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The history and future of compliance carbon markets in the US

As there is no national emissions trading scheme in the US, it is up to individual states to implement state-wide and regional compliance carbon markets. Upcoming regulatory updates to the WCI and RGGI markets, in conjunction with increased financial incentives from the IRA, serve as an opportunity for cap-and-invest systems to play a larger role in US decarbonization strategies.

Introduction Unlike the EU ETS, the US has not been successful in creating a national carbon market. Former President Barack Obama attempted to create a country-wide program but was unable to foster enough support among US states to do so. The oppositio...

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