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    Negotiations begin on Midwest carbon market

    Via Minnesota Public Radio, 

    Representatives from six states and Manitoba met yesterday in Detroit to begin discussions of a regional carbon market, in which states involved in the agreement could have a cost-effective way to reach emission reduction goals.

    While the foundation of the market will rest on a cap and trade program, little else has yet been agreed upon, including levels of reduction. DFLers in the state legislature are hoping that Governor Pawlenty’s representatives will stand by Minnesota’s state goal (80% reductions below 2005 levels by 2050) during the negotiations. Another key element for the states to discuss is the way in which the emission allowances are distributed—whether the states will give away some or all of them to businesses or whether businesses have to pay for them.

    Again, most experts agree that a national or international agreement would be preferable to a regional system but in the absence of action from a higher level of governance, the states involved have decided not to wait. The group of negotiators, five of whom are representing Minnesota, was selected by the Midwest Governors Association. They hope to have a plan for the market prepared by November.