Clean Air Markets Partnerships
There is a growing interest in the use of cap and trade programs to protect human health and the environment. Due in part to the experience from the U.S. Acid Rain Program and NOX Budget Program, governments around the world are assessing the potential of cap and trade programs to control emissions.
Because pollution crosses political boundaries, the Environmental Protection Agency provides information and technical assistance to governments interested in designing effective programs to enhance and maintain air quality. These efforts help to protect the environment and the health of Americans and our global neighbors.
EPA has shared the experiences with and lessons from cap and trade programs with more than 50 governments from around the globe and has partnered with a diverse group of governments and regional organizations to help them assess whether a cap and trade approach is appropriate for their circumstances. EPA has also provided technical assistance on the design of trading programs that meet a country or regional organization's needs and capacity.
Cooperation
EPA provides technical assistance and has developed formal working relationships with many countries to promote the effective, credible use of cap and trade to reduce air emissions. EPA's partners include:
Resources
EPA has developed a number of resources that describe our approach to designing and implementing cap and trade programs and the lessons that EPA, state environment agencies, and stakeholders have learned through more than 15 years of designing and implementing cap and trade programs.
You will need Adobe Acrobat Reader to view some of the files on this page. See EPA's About PDF page to learn more about PDF, and a link to the free Adobe Acrobat Reader.
- Tools of the Trade: A Guide to Developing and Operating a Cap and Trade Program. (PDF 78 pp., 1.05 MB) The cap and trade guidebook provides an in-depth discussion of the procedures for designing and implementing a cap and trade program. The guidebook uses examples from the U.S. Acid Rain and NOX Budget Programs, California's RECLAIM program, and the United Kingdom's Emission Trading Scheme.
- Building Institutions to Address Air Pollution in Developing Countries: The Cap and Trade Approach. (PDF 15pp., 114KB) The paper discusses how cap and trade may be effectively used to control pollution in countries that lack sufficient resources for some forms of environmental regulation.
- Fundamentals of Successful Monitoring, Reporting, and Verification under a Cap and Trade Program (PDF 8pp., 99KB) The paper outlines the basic building blocks for an effective program to measure, report, and verify emissions from large, stationary emission sources.
- The U.S. Acid Rain Program: Key Insights from the Design, Operation, and Assessment of a Cap-and-Trade Program. (PDF 12pp., 1.2 MB) The article highlights the lessons learned from the successful U.S. Acid Rain Program to control sulfur dioxide (SO2) and nitrogen oxides (NOX) from electric power plants.
- The NOx Budget Trading Program: A Collaborative, Innovative Approach to Solving a Regional Air Pollution Problem. (PDF 13 pp., 1.4 MB). The article highlights the lessons learned from the NOX Budget Trading Program to control nitrogen oxides (NOX) from electric power plants and industrial emission sources.
- The Experience with Emissions Control Policies in the United States.. (PDF 5 pp., 2.8 MB) The report provides background information about the health and environmental impacts of air pollution from electric power plants, the structure of the U.S. power sector, the policies to control sulfur dioxide (SO2) from the power sector.
Partners
- Providing technical comments and advice to CONAMA.
- Conducting training programs for government officials, industry representatives and other stakeholders.
- Partnering with CONAMA to analyze the design options for emission trading programs in Chile.
- Emissions Trading in Santiago, Chile (PDF 13pp 122KB). The paper provides a review of the emission trading program for particulate matter in the Santiago metropolitan area. The paper includes recommendations for future changes to the program.
- Providing technical comments and advice to SEMARNAT.
- Conducting training programs for government officials, industry representatives and other stakeholders.
- Analyzing the costs of controlling emissions at Mexican power plants.
- SO2, NOX and Particle Control Technologies and Abatement Costs for the Mexican Electricity Sector. (PDF 123pp 3.4MB) The study assesses the costs to control sulfur dioxide (SO2), nitrogen oxides (NOX), and particulate matter emissions from the Mexican power sector.
Canada
EPA is working with Environment Canada to discuss issues of joint concern, including air quality management efforts such as emission trading programs . For more information on EPA's activities with Canada, see the US-Canada Air Quality Agreement.
Chile
The EPA is working with the Comision Nacional del Medio Ambiente (CONAMA) to help them build the capacity for emission trading programs in and around the Santiago metropolitan area. The EPA's activities include:
Resources:
China
EPA is working with the Ministry of Environmental Protection (MEP) to build the institutions and infrastructure for sulfur dioxide (SO2) cap and trade programs. For more information about EPA's activities with China, see Partnerships - China.
Mexico
Note: The following links are outside of EPA
The EPA has worked with the Secretaría de Medio Ambiente y Recursos Naturales (SEMARNAT) and Centro de Investigación en Energía (CIE) of the Universidad Nacional Autónoma de México (UNAM) to help them understand the foundations necessary for an effective emission trading programs for sulfur dioxide (SO2) emissions from electric power plants. The EPA's activities include: