Carbon trading to be highly regulated under Senate energy bill

The American Power Act mandates an economy-wide reduction in global warming pollution of 83% of 2005 levels by 2020, falling to 17% by 2050. This would be achieved initially via a cap-and-trade scheme for the largest US producers, covering the 7,500 factories and power plants that emit more than 25,000 tons of carbon pollution annually.

The legislation would establish a collar to keep carbon prices between $12 and $25 per tonne. Participation in the auction and primary cash markets would be

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