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Carbon offsets and credits

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Carbon offsetting is a carbon trading mechanism that enables entities to compensate for offset greenhouse gas emissions by investing in projects that reduce, avoid, or remove emissions elsewhere. When an entity invests in a carbon offsetting program, it receives carbon credit or offset credit , which account for the net climate benefits that one entity brings to another. After certification by a government or independent certification body, credits can be traded between entities. One carbon credit represents a reduction, avoidance or removal of one metric tonne of carbon dioxide or its carbon dioxide-equivalent (CO 2 e).

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158-431: A variety of greenhouse gas reduction projects can qualify for offsets and credits depending on the scheme. Some include forestry projects that avoid logging and plant saplings, renewable energy projects such as wind farms , biomass energy , biogas digesters , hydroelectric dams , as well as energy efficiency projects. Further projects include carbon dioxide removal projects, carbon capture and storage projects, and

316-607: A much greater potential for global warming than carbon dioxide by volume. It is easy to capture and destroy these pollutants at their source. So they present a large low-cost source of carbon offsets. As a category, HFCs, PFCs, and N 2 O reductions represent 71 percent of offsets issued under the CDM. Since many of these are now banned by an amendment to the Montreal Protocol, they are often no longer eligible for offsets or credits. Land use, land-use change and forestry have

474-412: A "nonroad" engine program ( 42 U.S.C.   § 7547 ), which expanded EPA regulation to locomotives, heavy equipment and small equipment engines fueled by diesel (compression-ignition), and gas and other fuels (spark-ignition), and marine transport. EPA has developed a variety of voluntary programs to incentivize and promote reduction in transportation-related air pollution, including elements of

632-520: A criteria pollutant, controlling it through mobile source authorities, but it was required to do so after successful litigation by Natural Resources Defense Council (NRDC) in 1976 (43 FR 46258 ). The 1977 CAA Amendments created a process for regular review of the NAAQS list, and created a permanent independent scientific review committee to provide technical input on the NAAQS to EPA. EPA added regulations for PM2.5 in 1997 (62 FR 38652 ), and updates

790-491: A developed country with relatively high domestic costs of emission reduction would set up a project in another developed country. Offset credits under this program are designated as Emission Reduction Units. The International Emissions Trading program enables countries to trade in the international carbon credit market to cover their shortfall in assigned amount units . Countries with surplus units can sell them to countries that are exceeding their emission targets under Annex B of

948-463: A faster rate than they are consumed". Solar power , wind power , hydroelectricity , geothermal energy, and biomass are widely agreed to be the main types of renewable energy. Renewable energy often displaces conventional fuels in four areas: electricity generation , hot water / space heating , transportation , and rural (off-grid) energy services. Although almost all forms of renewable energy cause much fewer carbon emissions than fossil fuels,

1106-622: A generation. Soil management projects attempt to preserve or increase the amount of carbon sequestered in soil. Deforestation is particularly significant in Brazil, Indonesia, and parts of Africa, accounting for about 20 percent of greenhouse gas emissions. Carbon offsets allow firms to avoid deforestation by paying directly for forest preservation or providing substitutes for forest-based products. Offset schemes using reforestation, such as REDD, are available in developing countries, and are becoming increasingly available in developed countries including

1264-437: A given time. Solar energy can only be captured during the day, and ideally in cloudless conditions. Wind power generation can vary significantly not only day-to-day, but even month-to-month. This poses a challenge when transitioning away from fossil fuels: energy demand will often be higher or lower than what renewables can provide. Both scenarios can cause electricity grids to become overloaded, leading to power outages . In

1422-415: A greenhouse gas reduction project in a developing country, where the costs of greenhouse gas reduction activities are usually much lower. The developed country receives credits for meeting its emission reduction targets known as Certified Emission Reductions (CERs), while the developing country receives capital investment and clean technology or beneficial change in land use . Under Joint Implementation ,

1580-952: A large portion of the total, such as Kenya (43%) and Indonesia (5%). Technical advances may eventually make geothermal power more widely available. For example, enhanced geothermal systems involve drilling around 10 kilometres (6.2 mi) into the Earth, breaking apart hot rocks and extracting the heat using water. In theory, this type of geothermal energy extraction could be done anywhere on Earth. There are also other renewable energy technologies that are still under development, including enhanced geothermal systems , concentrated solar power , cellulosic ethanol , and marine energy . These technologies are not yet widely demonstrated or have limited commercialization. Some may have potential comparable to other renewable energy technologies, but still depend on further breakthroughs from research, development and engineering. Enhanced geothermal systems (EGS) are

1738-489: A larger share of this market in the future, compared to renewable energy projects. However, there is evidence that large companies are becoming more reluctant to use VCM offsets and credits because of a complex web of standards, despite an increased focus on net zero emissions goals. In 2022 voluntary carbon market (VCM) prices ranged from $ 8 to $ 30 per tonne of CO 2 e for the most common types of offset projects. Several factors can affect these prices. The costs of developing

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1896-638: A more energy-dense biofuel like ethanol. Wood is the most significant biomass energy source as of 2012 and is usually sourced from a trees cleared for silvicultural reasons or fire prevention . Municipal wood waste – for instance, construction materials or sawdust – is also often burned for energy. The biggest per-capita producers of wood-based bioenergy are heavily forested countries like Finland, Sweden, Estonia, Austria, and Denmark. Bioenergy can be environmentally destructive if old-growth forests are cleared to make way for crop production. In particular, demand for palm oil to produce biodiesel has contributed to

2054-752: A new section to authorize abatement of international air pollution. The Air Quality Act of 1967 ( Pub. L.   90–148 ) authorized planning grants to state air pollution control agencies, permitted the creation of interstate air pollution control agencies, and required HEW to define air quality regions and develop technical documentation that would allow states to set ambient air quality and pollution control technology standards, and required states to submit implementation plans for improvement of air quality, and permitted HEW to take direct abatement action in air pollution emergencies. It also authorized expanded studies of air pollutant emission inventories, ambient monitoring techniques, and control techniques. This enabled

2212-589: A new title to address the issue of acid rain, and particularly nitrogen oxides (NO x ) and sulfur dioxide (SO 2 ) emissions from electric power plants powered by fossil fuels, and other industrial sources. The Acid Rain Program was the first emissions trading program in the United States, setting a cap on total emissions that was reduced over time by way of traded emissions credits, rather than direct controls on emissions. The program evolved in two stages:

2370-506: A new type of geothermal power which does not require natural hot water reservoirs or steam to generate power. Most of the underground heat within drilling reach is trapped in solid rocks, not in water. EGS technologies use hydraulic fracturing to break apart these rocks and release the heat they contain, which is then harvested by pumping water into the ground. The process is sometimes known as "hot dry rock" (HDR). Unlike conventional geothermal energy extraction, EGS may be feasible anywhere in

2528-403: A project are a significant factor. Those tied to projects that can sequester carbon have recently been selling at a premium compared to other projects such as renewable energy or energy efficiency. Projects that sequester carbon are also called Nature-Based Solutions. Projects with additional social and environmental benefits can command a higher price. This reflects the value of the co-benefits and

2686-409: A range of construction strategies and technologies that aim to optimize the distribution of solar heat in a building. Examples include solar chimneys , orienting a building to the sun, using construction materials that can store heat , and designing spaces that naturally circulate air . From 2020 to 2022, solar technology investments almost doubled from USD 162 billion to USD 308 billion, driven by

2844-572: A series of laws to reduce air pollution, and Congress began discussing whether to take further action in response. At the time, the primary federal agencies interested in air pollution were the United States Bureau of Mines , which was interested in "smoke abatement" (reducing smoke from coal burning), and the United States Public Health Service , which handled industrial hygiene and was concerned with

3002-602: A solely national program, the CAA imposes responsibilities on the U.S. states to create plans to implement the Act's requirements. EPA then reviews, amends, and approves those plans. EPA first promulgated SIP regulations in 1971 and 1972. The 1970 Amendments imposed eight criteria that an implementation plan must meet. The EPA is required to approve plans that adhere to the Senate's three-year mandate for primary air quality standards even if

3160-490: A third party verifies the project — generates the carbon offset credit is known as the vintage . In 1977, major amendments to the US Clean Air Act created one of the first tradable emission offset mechanisms, allowing permitted facilities to increase emissions in exchange for paying another company to reduce its emissions of the same pollutant by a greater amount. The 1990 amendments to that same law established

3318-702: A variety of environmental conditions and perform more efficiently allowing a greater proportion of photon energy to end up in the storage compounds, i.e., carbohydrates (rather than building and sustaining living cells). However, prominent research faces hurdles, Sun Catalytix a MIT spin-off stopped scaling up their prototype fuel-cell in 2012 because it offers few savings over other ways to make hydrogen from sunlight. Most new renewables are solar, followed by wind then hydro then bioenergy. Investment in renewables, especially solar, tends to be more effective in creating jobs than coal, gas or oil. Worldwide, renewables employ about 12 million people as of 2020, with solar PV being

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3476-474: A voluntary market. These programs also have other positive externalities , or co-benefits, which include better air quality, increased biodiversity, and water and soil protection; community employment opportunities, energy access, and gender equality; and job creation, education opportunities, and technology transfer. Some certification programs have tools and research products to help quantify these benefits. Prices for offsets and credits vary widely, reflecting

3634-456: Is thermal energy (heat) extracted from the Earth's crust . It originates from several different sources , of which the most significant is slow radioactive decay of minerals contained in the Earth's interior , as well as some leftover heat from the formation of the Earth . Some of the heat is generated near the Earth's surface in the crust, but some also flows from deep within the Earth from

3792-602: Is a cap on emissions. Sources of emissions have the flexibility to find and apply the lowest-cost methods for reducing pollution. A central authority or government body usually allocates or sells a limited number (a "cap") of permits. These permit a discharge of a specific quantity of a specific pollutant over a set time period. Polluters are required to hold permits in amounts equal to their emissions. Those that want to increase their emissions must buy permits from others willing to sell them. These programs have been applied to greenhouse gases for several reasons. Their warming effects are

3950-593: Is a diverse range of sources of supply and demand as well as trading frameworks that drive offset and credit markets. Demand for offsets and credits derives from a range of compliance obligations, arising from international agreements, national laws, as well as voluntary commitments that companies and governments have adopted. Voluntary carbon markets usually consist of private entities purchasing carbon offset credits to meet voluntary greenhouse gas reduction commitments. In some cases, non-covered participants in an ETS may purchase credits as an alternative to purchasing offsets in

4108-471: Is a more economical means of long-term renewable energy storage, in terms of capital expenditures compared to pumped hydroelectric or batteries. Solar power produced around 1.3 terrawatt-hours (TWh) worldwide in 2022, representing 4.6% of the world's electricity. Almost all of this growth has happened since 2010. Solar energy can be harnessed anywhere that receives sunlight; however, the amount of solar energy that can be harnessed for electricity generation

4266-410: Is a reduction, avoidance, or removal of emissions to compensate for emissions released elsewhere. One carbon credit represents an emission reduction or removal of one metric tonne of carbon dioxide or the equivalent amount of greenhouse gases that contribute equally to global warming (CO 2 e). Carbon credits are a form of carbon pricing , along with carbon taxes and subsidies. Credits can move among

4424-537: Is a technology for generating electricity by mixing fresh water and salty sea water in large power cells. Most marine energy harvesting technologies are still at low technology readiness levels and not used at large scales. Tidal energy is generally considered the most mature, but has not seen wide deployment. The world's largest tidal power station is on Sihwa Lake , South Korea, which produces around 550 gigawatt-hours of electricity per year. Earth emits roughly 10 W of infrared thermal radiation that flows toward

4582-419: Is about 800 times denser than air , even a slow flowing stream of water, or moderate sea swell , can yield considerable amounts of energy. Water can generate electricity with a conversion efficiency of about 90%, which is the highest rate in renewable energy. There are many forms of water energy: Much hydropower is flexible, thus complementing wind and solar. In 2021, the world renewable hydropower capacity

4740-583: Is also taking place through provincial and district governments and at the local level through private landowners. As of 2020, there were over 400 ongoing REDD+ projects globally. Brazil and Colombia account for the largest amount of REDD+ project land area. The Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) is a global, market-based program to reduce emissions from international aviation. It aims to allow credits and offsets for emissions that cannot be reduced by technology and operational improvements or sustainable aviation fuels. To ensure

4898-516: Is also uncertainty about what investors could claim by purchasing various types of carbon credits. REDD+ is a UNFCCC framework, largely addressed at tropical regions in developing countries, that is designed to compensate countries for not clearing or degrading their forests, or for enhancing forest carbon stocks. It aims to create financial value for carbon stored in forests, using the concept of results-based payments. REDD+ also promotes co-benefits from reducing deforestation such as biodiversity. It

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5056-416: Is because it is difficult or impossible to determine their additionality . They usually generate revenue. And they usually involve subsidies or other complex financial arrangements. This can make them ineligible under many offset and credit programs. Methane is a potent greenhouse gas. It is most often emitted from landfills, livestock, and from coal mining. Methane projects can produce carbon offsets through

5214-414: Is because some might claim credit for emission reduction projects that would have been undertaken anyway. At prices of $ 100/tCO 2 e, a variety of carbon removal technologies could deliver around 2 GtCO 2 e per year of annual emission reductions between now and 2050. These technologies include reducing deforestation, forest restoration, CCS, BECCs and renewables in least developed countries. In addition, as

5372-737: Is better forest management. Offset certification and carbon trading programs vary by how much they consider specific projects eligible for offsets or credits. The European Union Emission Trading System considers nuclear energy projects, afforestation or reforestation activities, and projects involving destruction of industrial gases ineligible. Industrial gases include HFC-23 and N 2 O . Renewable energy projects can include hydroelectric, wind, photovoltaic solar, solar hot water, biomass power, and heat production. These types of projects help societies move from electricity and heating based on fossil fuels towards forms of energy that are less carbon-intensive. However, they may not qualify as offset projects. This

5530-525: Is common in Iceland, or to generate electricity. At smaller scales, geothermal power can be generated with geothermal heat pumps , which can extract heat from ground temperatures of under 30 °C (86 °F), allowing them to be used at relatively shallow depths of a few meters. Electricity generation requires large plants and ground temperatures of at least 150 °C (302 °F). In some countries, electricity produced from geothermal energy accounts for

5688-636: Is controversial. Renewable energy installations can be large or small and are suited for both urban and rural areas. Renewable energy is often deployed together with further electrification . This has several benefits: electricity can move heat and vehicles efficiently and is clean at the point of consumption. Variable renewable energy sources are those that have a fluctuating nature, such as wind power and solar power. In contrast, controllable renewable energy sources include dammed hydroelectricity , bioenergy , or geothermal power . Renewable energy systems have rapidly become more efficient and cheaper over

5846-481: Is counted, the Clean Air Act has substantially reduced air pollution and improved US air quality—benefits which EPA credits with saving trillions of dollars and many thousands of lives each year. In the United States, the "Clean Air Act" typically refers to the codified statute at 42 U.S.C. ch. 85 . That statute is the product of multiple acts of Congress , one of which—the 1963 act—was actually titled

6004-401: Is enough fuel for breeder reactors to satisfy the world's energy needs for 5 billion years at 1983's total energy consumption rate, thus making nuclear energy effectively a renewable energy. In addition to seawater the average crustal granite rocks contain significant quantities of uranium and thorium with which breeder reactors can supply abundant energy for the remaining lifespan of the sun on

6162-518: Is influenced by weather conditions , geographic location and time of day. There are two mainstream ways of harnessing solar energy: solar thermal , which converts solar energy into heat; and photovoltaics (PV), which converts it into electricity. PV is far more widespread, accounting for around two thirds of the global solar energy capacity as of 2022. It is also growing at a much faster rate, with 170 GW newly installed capacity in 2021, compared to 25 GW of solar thermal. Passive solar refers to

6320-460: Is more valuable than VRE countries with large hydroelectric developments such as Canada and Norway are spending billions to expand their grids to trade with neighboring countries having limited hydro. Biomass is biological material derived from living, or recently living organisms. Most commonly, it refers to plants or plant-derived materials. As an energy source, biomass can either be used directly via combustion to produce heat, or converted to

6478-596: Is not possible to use or store excess electricity. Electrical energy storage is a collection of methods used to store electrical energy. Electrical energy is stored during times when production (especially from intermittent sources such as wind power , tidal power , solar power ) exceeds consumption, and returned to the grid when production falls below consumption. Pumped-storage hydroelectricity accounts for more than 85% of all grid power storage . Batteries are increasingly being deployed for storage and grid ancillary services and for domestic storage. Green hydrogen

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6636-520: Is often associated with unsustainable deforestation . As part of the global effort to limit climate change , most countries have committed to net zero greenhouse gas emissions . In practice, this means phasing out fossil fuels and replacing them with low-emissions energy sources. This much needed process, coined as "low-carbon substitutions" in contrast to other transition processes including energy additions, needs to be accelerated multiple times in order to successfully mitigating climate change. At

6794-489: Is one of the United States' first and most influential modern environmental laws . As with many other major U.S. federal environmental statutes , the Clean Air Act is administered by the U.S. Environmental Protection Agency (EPA), in coordination with state, local, and tribal governments. EPA develops extensive administrative regulations to carry out the law's mandates. Associated regulatory programs, which are often technical and complex, implement these regulations. Among

6952-468: Is responsible for approving methodologies, setting guidance, and implementing procedures. The preparation work for this is expected to last until the end of 2023. ER credits issued will fall by 2% to ensure that the program as a whole results in an overall Mitigation of Global Emissions. An additional 5% reduction of ERs will go to a fund to finance adaptation. Administrative fees for program management are still under discussion. CDM projects may transition to

7110-477: Is that the heated water can be stored until it is needed, eliminating the need for a separate energy storage system. Solar thermal power can also be converted to electricity by using the steam generated from the heated water to drive a turbine connected to a generator. However, because generating electricity this way is much more expensive than photovoltaic power plants, there are very few in use today. Humans have harnessed wind energy since at least 3500 BC. Until

7268-541: Is the program of choice for most of the forest credits in the voluntary market, and almost all REDD+ projects. The Gold Standard was developed in 2003 by the World Wide Fund for Nature (WWF) in consultation with an independent standards advisory board. Projects are open to any non-government, community-based organization. Allowable categories include renewable energy supply, energy efficiency, afforestation , reforestation, and agriculture. The program also promotes

7426-568: Is the second largest trading system in the world after the Chinese national carbon trading scheme . It covers over 40% of European GHG emissions. California's cap-and-trade program covers about 85% of statewide GHG emissions. Voluntary carbon markets (VCM) are largely unregulated markets where carbon offsets are traded by corporations, individuals and organizations that are under no legal obligation to make emission cuts. In voluntary carbon markets, companies or individuals use carbon offsets to meet

7584-662: Is to slow and eventually stop climate change , which is widely agreed to be caused mostly by greenhouse gas emissions . In general, renewable energy sources cause much lower emissions than fossil fuels. The International Energy Agency estimates that to achieve net zero emissions by 2050, 90% of global electricity generation will need to be produced from renewable sources. Renewables also cause much less air pollution than fossil fuels, improving public health, and are less noisy . The deployment of renewable energy still faces obstacles, especially fossil fuel subsidies , lobbying by incumbent power providers, and local opposition to

7742-463: The 2023 United Nations Climate Change Conference , around three-quarters of the world's countries set a goal of tripling renewable energy capacity by 2030. The European Union aims to generate 40% of its electricity from renewables by the same year. Renewable energy is more evenly distributed around the world than fossil fuels, which are concentrated in a limited number of countries. It also brings health benefits by reducing air pollution caused by

7900-597: The Acid Rain Trading Program , which introduced the concept of a cap and trade system, which allowed companies to buy and sell offsets created by other companies that invested in emission reduction projects subject to an overall limit on emissions. In the 1990s, regulatory frameworks for the US Clean Water Act enabled mitigation banking and wetlands offsetting, which set the procedural and conceptual precedent for carbon offsetting. In 1997,

8058-628: The European Energy Exchange , Global Carbon Credit Exchange gCCEx, Intercontinental Exchange , MexiCO 2 , NASDAQ OMX Commodities Europe and Xpansiv. Many companies now engage in emissions abatement, offsetting, and sequestration programs, which generate credits that can be sold on an exchange. At the start of 2022 there were 25 operational emissions trading systems around the world. They are in jurisdictions representing 55% of global GDP. These systems cover 17% of global emissions. The European Union Emissions Trading System (EU-ETS)

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8216-668: The European Union Emissions Trading System (EU-ETS) and the California Cap and Trade Program. Eligible credits in these programs may include credits that international or independent crediting systems have issued. There are also standards and crediting mechanisms that independent, nongovernmental entities such as Verra and Gold Standard manage. Under the Clean Development Mechanism , a developed country can sponsor

8374-507: The Gold Standard also have detailed guidance on what descriptive terms are appropriate for buyers of offsets and credits. Offsets from past project have to be additional to what would have happened without the project. For future projects, forward crediting is a process where credits are issued for projected emissions reductions, which can be claimed by buyers even before the reduction activities have occurred. When credit holders claim

8532-494: The NASA Office of Science and Technology Policy examined the concept and concluded that with current and near-future technologies it would be economically uncompetitive. Collection of static electricity charges from water droplets on metal surfaces is an experimental technology that would be especially useful in low-income countries with relative air humidity over 60%. Breeder reactors could, in principle, depending on

8690-885: The Sustainable Developments Goals . Projects must meet at least three of those goals besides reducing GHG emissions. Projects must make a net-positive contribution to the economic, environmental and social welfare of the local population. Program monitoring requirements help determine this. A variety of projects can be used to reduce GHG emissions and thus to generate carbon offsets and credits. These can include land use improvement, methane capture, biomass sequestration , renewable energy , or industrial energy efficiency. They also include reducing methane, reforestation and switching fuel, for example to carbon-neutral and carbon-negative fuels . The CDM identifies over 200 types of projects suitable for generating carbon offsets and credits. An example of land use improvement

8848-682: The Verified Carbon Standard issued by Verra, the Gold Standard , the Climate Action Reserve, the American Carbon Registry, and Plan Vivo. Puro Standard, the first standard for engineered carbon removal, is verified by DNV GL. There are also some additional standards for validating co-benefits, including the Climate, Community and Biodiversity Standard (CCB Standard), also issued by Verra, and

9006-473: The de facto standard that automobile manufacturers subsequently accepted, to avoid having to develop different emission systems in their vehicles for different states. However, in September 2019, President Donald Trump attempted to revoke this waiver, arguing that the stricter emissions have made cars too expensive, and by removing them, will make vehicles safer. EPA's Andrew Wheeler also stated that while

9164-511: The mantle and core . Geothermal energy extraction is viable mostly in countries located on tectonic plate edges, where the Earth's hot mantle is more exposed. As of 2023, the United States has by far the most geothermal capacity (2.7 GW, or less than 0.2% of the country's total energy capacity ), followed by Indonesia and the Philippines. Global capacity in 2022 was 15 GW. Geothermal energy can be either used directly to heat homes, as

9322-927: The ozone layer . Consistent with the US commitments in the Montreal Protocol , CAA Title VI, added by the 1990 CAA Amendments, mandated regulations regarding the use and production of chemicals that harm Earth's stratospheric ozone layer. Under Title VI, EPA runs programs to phase out ozone-destroying substances, track their import and export, determine exemptions for their continued use, and define practices for destroying them, maintaining and servicing equipment that uses them, identifying new alternatives to those still in use , and licensing technicians to use such chemicals. Rules for pollutants emitted from internal combustion engines in vehicles. Since 1965, Congress has mandated increasingly stringent controls on vehicle engine technology and reductions in tailpipe emissions. Today,

9480-400: The 20th century, it was primarily used to power ships, windmills and water pumps. Today, the vast majority of wind power is used to generate electricity using wind turbines. Modern utility-scale wind turbines range from around 600 kW to 9 MW of rated power. The power available from the wind is a function of the cube of the wind speed, so as wind speed increases, power output increases up to

9638-454: The Act. The EPA's auto emission standards for greenhouse gas emissions issued in 2010 and 2012 are intended to cut emissions from targeted vehicles by half, double fuel economy of passenger cars and light-duty trucks by 2025 and save over $ 4 billion barrels of oil and $ 1.7 trillion for consumers. The agency has also proposed a two-phase program to reduce greenhouse gas emissions for medium and heavy duty trucks and buses. In addition, EPA oversees

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9796-618: The Agency feels the plan does not appear feasible. In Union Electric Co. v. Environmental Protection Agency the Supreme Court considered whether the Agency was required to reject plans that were not technologically or economically feasible. The court decided that states could adopt emission standards stricter than national standards and "force" technology (i.e. require installation of more advanced technologies). The 1977 CAA Amendments added SIP requirements for areas that had not attained

9954-525: The Article 6.4 program subject to approval by the country hosting the project, and if the project meets the new rules, with certain exceptions for rules on methodologies. Projects can generally continue to use the same CDM methodologies through 2025. From 2026 on, they must meet all Article 6 requirements. Up to 2.8 billion credits could potentially become eligible for issuance under Article 6.4 if all CDM projects transition. Article 6 does not directly regulate

10112-415: The Clean Air Act's major regulatory programs. Today, the following are major regulatory programs under the Clean Air Act. The National Ambient Air Quality Standards (NAAQS) govern how much ground-level ozone (O 3 ), carbon monoxide (CO), particulate matter (PM 10 , PM 2.5 ), lead (Pb), sulfur dioxide (SO 2 ), and nitrogen dioxide (NO 2 ) are allowed in the outdoor air. The NAAQS set

10270-460: The Clean Air Act, and another of which—the 1970 act—is most often referred to as such. In the U.S. Code, the statute itself is divided into subchapters, and the section numbers are not clearly related to the subchapters. However, in the bills that created the law, the major divisions are called "Titles", and the law's sections are numbered according to the title (e.g., Title II begins with Section 201). In practice, EPA, courts, and attorneys often use

10428-502: The Clean Diesel Campaign, Ports Initiative, SmartWay program (for the freight transportation sector), and others. The federal government has regulated the chemical composition of transportation fuels since 1967, with significant new authority added in 1970 to protect public health. One of EPA's earliest actions was the elimination of lead in U.S. gasoline beginning in 1971, a project that has been described as "one of

10586-529: The EPA test results with real-world driving. In 1996, EPA proposed updating the Federal Testing Procedures to add a new higher-speed test (US06) and an air-conditioner-on test (SC03) to further improve the correlation of fuel economy and emission estimates with real-world reports. In December 2006 the updated testing methodology was finalized to be implemented in model year 2008 vehicles and set

10744-527: The EPA with enforcement authority and requiring states to develop State Implementation Plans for how they would meet new national ambient air quality standards by 1977. This cooperative federal model continues today. The law recognizes that states should lead in carrying out the Clean Air Act, because pollution control problems often require special understanding of local conditions such as geography, industrial activity, transportation and housing patterns. However, states are not allowed to have weaker controls than

10902-484: The EPA, as well as giving the EPA the ability to regulate the inclusion of renewable sources, notably, through a $ 27 billion green bank , among other methods. Other important but less foundational Clean Air Act regulatory programs tend to build on or cut across the above programs: The 1963 act required development of State Implementation Plans (SIPs) as part of a cooperative federalist program for developing pollution control standards and programs. Rather than create

11060-450: The GHG reductions, they must retire the carbon credits such that cannot be transferred and used. Carbon offsets can be tracked and reported within an offset certification registry, which may contain project information such as project status, project documents, credits generated, ownership, sale, and retirement. The year in which a carbon emissions reduction project — usually the year in which

11218-568: The Kyoto Protocol was that the marginal cost of reducing emissions would differ among countries. Studies suggested that the flexibility mechanisms could reduce the overall cost of meeting the targets. Offset and credit programs have been identified as a way for countries to meet their NDC commitments and achieve the goals of the Paris agreement at a lower cost. They may also help close the emissions gap identified in annual UNEP reports. There

11376-661: The Kyoto Protocol. Nuclear energy projects are not eligible for credits under these programs. Country-specific designated national authorities approve projects under the CDM. Article 6 of the Paris Agreement continues to support offset and credit programs between countries, including CDM projects from the Kyoto Protocol. Programs now occur to help achieve emission reduction targets set out in each country's nationally determined contribution (NDC). The ITMO system requires "corresponding adjustments" to avoid double counting of emission reductions. Double-counting occurs if both

11534-450: The NAAQS from time to time based on emerging environmental and health science. The National Emissions Standards for Hazardous Air Pollutants (NESHAPs) govern how much of 187 toxic air pollutants are allowed to be emitted from industrial facilities and other sources. Under the CAA, hazardous air pollutants (HAPs, or air toxics) are air pollutants other than those for which NAAQS exist, which threaten human health and welfare. The NESHAPs are

11692-473: The Prevention of Significant Deterioration (PSD) of air quality in areas attaining the NAAQS. The 1977 CAAA also contained requirements pertaining to sources in non-attainment areas for NAAQS. A non-attainment area is a geographic area that does not meet one or more of the federal air quality standards. Both of these 1977 CAAA established major permit review requirements to ensure attainment and maintenance of

11850-554: The SIP requirements by adding "Prevention of Significant Deterioration" (PSD) requirements. These requirements protect areas, including particularly wilderness areas and national parks, that already met the NAAQS. The PSD provision requires SIPs to preserve good quality air in addition to cleaning up bad air. The new law also required New Source Review (investigations of proposed construction of new polluting facilities) to examine whether PSD requirements would be met. The Clean Air Act provided

12008-841: The Social Carbon Standard, issued by the Ecologica Institute. The voluntary carbon markets currently represent less than 1% of the reductions pledged in country NDCs by 2030. It represents an even smaller portion of the reductions needed to achieve the 1.5°C Paris temperature goal pathway in 2030. However, the VCM is growing significantly. Between 2017 and 2021, both the issuance and retirement of VCM carbon offsets more than tripled. Some predictions call for global VCM demand to increase 15-fold between 2021 and 2030, and 100 times by 2050. Carbon removal projects such as forestry and carbon capture and storage are expected to have

12166-475: The US and the UK. Renewable energy Renewable energy (or green energy ) is energy from renewable natural resources that are replenished on a human timescale . The most widely used renewable energy types are solar energy , wind power , and hydropower . Bioenergy and geothermal power are also significant in some countries. Some also consider nuclear power a renewable power source , although this

12324-410: The US in 2022. Lower prices on the VCM are in part due to an excess of supply in relation to demand. Some types of offsets are able to be created at very low costs under present standards. Without this surplus, current VCM prices could be at least $ 10/tCO 2 e higher. Some pricing forecasts predict VCM prices could increase to as much as $ 47–$ 210 per tonne by 2050. There could be an even higher spike in

12482-853: The acceptable levels of certain air pollutants in the ambient air in the United States. Prior to 1965, there was no national program for developing ambient air quality standards, and prior to 1970 the federal government did not have primary responsibility for developing them. The 1970 CAA amendments required EPA to determine which air pollutants posed the greatest threat to public health and welfare and promulgate NAAQS and air quality criteria for them. The health-based standards were called "primary" NAAQS, while standards set to protect public welfare other than health (e.g., agricultural values) were called "secondary" NAAQS. In 1971, EPA promulgated regulations for sulfur oxides, particulate matter, carbon monoxide, photochemical oxidants, hydrocarbons, and nitrogen dioxide (36 FR 22384 ). Initially, EPA did not list lead as

12640-476: The actual reductions achieved. To be credible, the reduction in emissions must meet three criteria: they must last indefinitely, be additional to emission reductions that were going to happen anyway, and must be measured, monitored and verified by independent third parties to ensure that the amount of reduction promised has in fact been attained. A carbon offset or carbon credit is a way of compensating for emissions of carbon dioxide or other greenhouse gases . It

12798-610: The administration's decision. In March 2022 the Biden administration reversed the Trump-era rule, allowing California to again set stricter auto emissions standards. Between the Second Industrial Revolution and the 1960s, the United States experienced increasingly severe air pollution . Following the 1948 Donora smog event, the public began to discuss air pollution as a major problem, states began to pass

12956-537: The agency respects federalism, it could not allow one state to dictate standards for the entire nation. California's governor Gavin Newsom considered the move part of Trump's "political vendetta" against California and stated his intent to sue the federal government. Twenty-three states, along with the District of Columbia and the cities of New York City and Los Angeles, joined California in a federal lawsuit challenging

13114-425: The air, measure their quantity, and have a plan to control and minimize them as well as to periodically report. This consolidated requirements for a facility into a single document. In non-attainment areas, permits were required for sources that emit as little as 50, 25, or 10 tons per year of VOCs depending on the severity of the region's non-attainment status. Most permits are issued by state and local agencies. If

13272-436: The applicable NAAQS ("nonattainment areas"). In these areas, states were required to adopt plans that made "reasonable further progress" toward attainment until all "reasonably available control measures" could be adopted. As progress on attainment was much slower than Congress originally instructed, major amendments to SIP requirements in nonattainment areas were part of the 1990 CAA Amendments. The 1977 CAA Amendments modified

13430-446: The burning of fossil fuels. The potential worldwide savings in health care costs have been estimated at trillions of dollars annually. The two most important forms of renewable energy, solar and wind, are intermittent energy sources : they are not available constantly, resulting in lower capacity factors . In contrast, fossil fuel power plants are usually able to produce precisely the amount of energy an electricity grid requires at

13588-529: The capture of methane for energy production. Examples include the combustion or containment of methane generated by farm animals by use of an anaerobic digester , in landfills, or from other industrial waste . Carbon offsets that fund renewable energy projects help lower the carbon intensity of energy supply. Energy conservation projects seek to reduce the overall demand for energy. Carbon offsets in this category fund projects of three main types. Cogeneration plants generate both electricity and heat from

13746-408: The causes of lung health problems. After several years of proposals and hearings, Congress passed the first federal legislation to address air pollution in 1955. The Air Pollution Control Act of 1955 authorized a research and training program, sending $ 3 million per year to the U.S. Public Health Service for five years, but did not directly regulate pollution sources. The 1955 Act's research program

13904-778: The cold outer space. Solar energy hits the surface and atmosphere of the earth and produces heat. Using various theorized devices like emissive energy harvester (EEH) or thermoradiative diode, this energy flow can be converted into electricity. In theory, this technology can be used during nighttime. Producing liquid fuels from oil-rich (fat-rich) varieties of algae is an ongoing research topic. Various microalgae grown in open or closed systems are being tried including some systems that can be set up in brownfield and desert lands. There have been numerous proposals for space-based solar power , in which very large satellites with photovoltaic panels would be equipped with microwave transmitters to beam power back to terrestrial receivers. A 2024 study by

14062-399: The collective label LULUCF. LULUCF projects focus on natural carbon sinks such as forests and soil. There are a number of different types of LULUCF projects. Forestry-related projects focus on avoiding deforestation. They do this by protecting existing forests, restoring forests on land that was once forested, and creating forests on land that previously had no forests, typically for more than

14220-469: The cost of using offsets and credits rises, investments in reducing supply chain emissions will become more attractive. Verra was developed in 2005. It is a widely used voluntary carbon standard, which also offers specific methodologies for REDD+ projects. As of 2020, there had been over 1,500 certified VCS projects covering energy, transport, waste, forestry, and other sectors. In 2021, Verra issued 300 MtCO 2 e worth of offset credits for 110 projects. Verra

14378-501: The crops used to produce bioethanol and biodiesel are grown specifically for this purpose, although used cooking oil accounted for 14% of the oil used to produce biodiesel as of 2015. The biomass used to produce biofuels varies by region. Maize is the major feedstock in the United States, while sugarcane dominates in Brazil. In the European Union, where biodiesel is more common than bioethanol, rapeseed oil and palm oil are

14536-412: The deforestation of tropical rainforests in Brazil and Indonesia. In addition, burning biomass still produces carbon emissions, although much less than fossil fuels (39 grams of CO 2 per megajoule of energy, compared to 75 g/MJ for fossil fuels). Some biomass sources are unsustainable at current rates of exploitation (as of 2017). Biofuels are primarily used in transportation, providing 3.5% of

14694-461: The elimination of methane emissions in various settings such as landfills . Many projects that give credits for carbon sequestration have received criticism as greenwashing because they overstated their ability to sequester carbon, with some projects being shown to actually increase overall emissions. Carbon offset and credit programs provide a mechanism for countries to meet their Nationally Determined Contributions (NDC) commitments to achieve

14852-528: The environmental integrity of these offsets, the program has developed a list of eligible offsets that can be used. Operating principles are similar to those under existing trading mechanisms and carbon offset certification standards. CORSIA has applied to international aviation since January 2019. At that point all airlines had been required to report their CO 2 emissions on an annual basis. International flights must undertake offsetting under CORSIA since January 2021. Compliance market credits account for most of

15010-472: The equipment required to be installed in new and modified industrial facilities, and the rules for determining whether a facility is "new". The 1970 CAA required EPA to develop standards for newly constructed and modified stationary sources (industrial facilities) using the "best system of emission reduction which (taking into account the cost of achieving such reduction) the [EPA] determines has been adequately demonstrated." EPA issued its first NSPS regulation

15168-585: The fastest-growing renewable energy technology. It is cheap, low-maintenance and scalable; adding to an existing PV installation as demanded arises is simple. Its main disadvantage is its poor performance in cloudy weather. PV systems range from small, residential and commercial rooftop or building integrated installations, to large utility-scale photovoltaic power station . A household's solar panels can either be used for just that household or, if connected to an electrical grid, can be aggregated with millions of others. The first utility-scale solar power plant

15326-761: The federal funding and legislation of the 1960s. In the Clean Air Amendments of 1970 ( Pub. L.   91–604 ), Congress greatly expanded the federal mandate by requiring comprehensive federal and state regulations for both industrial and mobile sources. The law established the National Ambient Air Quality Standards (NAAQS), New Source Performance Standards (NSPS); and National Emissions Standards for Hazardous Air Pollutants (NESHAPs), and significantly strengthened federal enforcement authority, all toward achieving aggressive air pollution reduction goals. To implement

15484-476: The federal government to increase its activities to investigate enforcing interstate air pollution transport, and, for the first time, to perform far-reaching ambient monitoring studies and stationary source inspections. The 1967 act also authorized expanded studies of air pollutant emission inventories, ambient monitoring techniques, and control techniques. While only six states had air pollution programs in 1960, all 50 states had air pollution programs by 1970 due to

15642-418: The federal standards, but carves out a special exemption for California due to its past issues with smog pollution in the metropolitan areas. In practice, when California 's environmental agencies decide on new vehicle emission standards, they are submitted to the EPA for approval under this waiver, with the most recent approval in 2009. The California standard was adopted by twelve other states, and established

15800-414: The first stage required more than 100 electric generating facilities larger than 100 megawatts to meet a 3.5 million ton SO 2 emission reduction by January 1995. The second stage gave facilities larger than 75 megawatts a January 2000 deadline. The program has achieved all of its statutory goals. The CAA ozone program is a technology transition program intended to phase out the use of chemicals that harm

15958-548: The fuel cycle employed, extract almost all of the energy contained in uranium or thorium , decreasing fuel requirements by a factor of 100 compared to widely used once-through light water reactors , which extract less than 1% of the energy in the actinide metal (uranium or thorium) mined from the earth. The high fuel-efficiency of breeder reactors could greatly reduce concerns about fuel supply, energy used in mining, and storage of radioactive waste . With seawater uranium extraction (currently too expensive to be economical), there

16116-686: The goals of the Paris Agreement . Article 6 of the Paris Agreement includes three mechanisms for "voluntary cooperation" between countries towards climate goals, including carbon markets . Article 6.2 enabled countries to directly trade carbon credits and units of renewable power with each other. Article 6.4 established a new international carbon market allowing countries or companies to use carbon credits generated in other countries to help meet their climate targets. Carbon offset and credit programs are coming under increased scrutiny because their claimed emissions reductions may be inflated compared to

16274-590: The goals they set themselves for reducing emissions. Credits are issued under independent crediting standards. Some entities also purchase them under international or domestic crediting mechanisms. National and subnational programs have been increasing in popularity. Many different groups exist within the voluntary carbon market, including developers, brokers, auditors, and buyers. Certification programs for VCMs establish accounting standards, project eligibility requirements, and monitoring, reporting and verification (MRV) procedures for credit and offset projects. They include

16432-413: The great public health achievements of the 20th century." EPA continues to regulate the chemical composition of gasoline , avgas , and diesel fuel in the United States. The 1990 amendments authorized a national operating permit program, sometimes called the "Title V Program", covering thousands of large industrial and commercial sources. It required large businesses to address pollutants released into

16590-744: The horizontal axis units currently in use. As offshore wind speeds average ~90% greater than that of land, offshore resources can contribute substantially more energy than land-stationed turbines. Investments in wind technologies reached USD 161 billion in 2020, with onshore wind dominating at 80% of total investments from 2013 to 2022. Offshore wind investments nearly doubled to USD 41 billion between 2019 and 2020, primarily due to policy incentives in China and expansion in Europe. Global wind capacity increased by 557 GW between 2013 and 2021, with capacity additions increasing by an average of 19% each year. Since water

16748-421: The host country and purchasing country count the reduction towards their target. If the receiving country uses ITMOs towards its NDC, the host country must discount those reductions from its emissions budget by adding and reporting that higher total in its biennial reporting. Otherwise Article 6.2 gives countries a lot of flexibility in how they can create trading agreements. The supervisory board under Article 6.4

16906-611: The largest Clean Air Act settlements have been reached with automakers accused of circumventing the Act's vehicle and fuel standards (e.g., the 2015 " Dieselgate " scandal). Much of EPA's regulation of greenhouse gas (GHG) emissions occurs under the programs discussed above. EPA began regulating GHG emissions following the 2007 Supreme Court ruling in Massachusetts v. EPA , the EPA's subsequent endangerment finding, and development of specific regulations for various sources. The EPA's authority to regulate carbon dioxide emissions

17064-630: The latter numbering scheme. Although many parts of the statute are quite detailed, others set out only the general outlines of the law's regulatory programs, and leave many key terms undefined. Responsible agencies, primarily EPA, have therefore developed administrative regulations to carry out Congress's instructions. EPA's proposed and final regulations are published in the Federal Register , often with lengthy background histories. The existing CAA regulations are codified at 40 C.F.R. Subchapter C, Parts 50–98. These Parts more often correspond to

17222-896: The law requires EPA to establish and regularly update regulations for pollutants that may threaten public health, from a wide variety of classes of motor vehicles, that incorporate technology to achieve the "greatest degree of emission reduction achievable", factoring in availability, cost, energy, and safety ( 42 U.S.C.   § 7521 ). EPA sets standards for exhaust gases, evaporative emissions, air toxics, refueling vapor recovery, and vehicle inspection and maintenance for several classes of vehicles that travel on roadways. EPA's "light-duty vehicles" regulations cover passenger cars, minivans, passenger vans, pickup trucks, and SUVs. "Heavy-duty vehicles" regulations cover large trucks and buses. EPA first issued motorcycle emissions regulations in 1977 (42 FR 1122 ) and updated them in 2004 (69 FR 2397 ). The air pollution testing system for motor vehicles

17380-460: The lifetimes of pre-existing facilities. In the 1977 CAA Amendments, Congress required EPA to conduct a "new source review" process ( 40 CFR 52 , subpart I) to determine whether maintenance and other activities rises to the level of modification requiring application of NSPS. The Acid Rain Program (ARP) is an emissions trading program for power plants to control the pollutants that cause acid rain . The 1990 CAA Amendments created

17538-408: The main feedstocks. China, although it produces comparatively much less biofuel, uses mostly corn and wheat. In many countries, biofuels are either subsidized or mandated to be included in fuel mixtures . There are many other sources of bioenergy that are more niche, or not yet viable at large scales. For instance, bioethanol could be produced from the cellulosic parts of crops, rather than only

17696-504: The main sequence of stellar evolution. Artificial photosynthesis uses techniques including nanotechnology to store solar electromagnetic energy in chemical bonds by splitting water to produce hydrogen and then using carbon dioxide to make methanol. Researchers in this field strived to design molecular mimics of photosynthesis that use a wider region of the solar spectrum, employ catalytic systems made from abundant, inexpensive materials that are robust, readily repaired, non-toxic, stable in

17854-408: The maximum output for the particular turbine. Areas where winds are stronger and more constant, such as offshore and high-altitude sites, are preferred locations for wind farms. Wind-generated electricity met nearly 4% of global electricity demand in 2015, with nearly 63 GW of new wind power capacity installed. Wind energy was the leading source of new capacity in Europe, the US and Canada, and

18012-472: The medium-term, this variability may require keeping some gas-fired power plants or other dispatchable generation on standby until there is enough energy storage, demand response , grid improvement, and/or baseload power from non-intermittent sources. In the long-term, energy storage is an important way of dealing with intermittency. Using diversified renewable energy sources and smart grids can also help flatten supply and demand. Sector coupling of

18170-866: The most important, the National Ambient Air Quality Standards program sets standards for concentrations of certain pollutants in outdoor air, and the National Emissions Standards for Hazardous Air Pollutants program which sets standards for emissions of particular hazardous pollutants from specific sources. Other programs create requirements for vehicle fuels, industrial facilities, and other technologies and activities that impact air quality. Newer programs tackle specific problems, including acid rain, ozone layer protection, and climate change. The CAA has been challenged in court many times, both by environmental groups seeking more stringent enforcement and by states and utilities seeking greater leeway in regulation. Although its exact benefits depend on what

18328-601: The national greenhouse gas inventory reporting program. Following the Supreme Court decision in West Virginia v. EPA , which ruled that Congress did not grant EPA the authority to require "outside the fence" options for limiting carbon dioxide at power plants, the Inflation Reduction Act of 2022 specifically defined carbon dioxide, hydrofluorocarbons, methane, nitrous oxide, perfluorocarbons, and sulfur hexafluoride as greenhouse gases to be regulated by

18486-553: The national minimum criteria set by EPA. EPA must approve each SIP, and if a SIP is not acceptable, EPA can retain CAA enforcement in that state. For example, California was unable to meet the new standards set by the 1970 amendments, which led to a lawsuit and a federal state implementation plan for the state. The federal government also assists the states by providing scientific research, expert studies, engineering designs, and money to support clean air programs. The law also prevents states from setting standards that are more strict than

18644-403: The newly created EPA immediately before major amendments in 1970. EPA has administered the Clean Air Act ever since, and Congress added major regulatory programs in 1977 and 1990. Most recently, the U.S. Supreme Court's ruling in Massachusetts v. EPA resulted in an expansion of EPA's CAA regulatory activities to cover greenhouse gases . The Clean Air Act of 1963 ( Pub. L.   88–206 )

18802-407: The next year, covering steam generators, incinerators, Portland cement plants, and nitric and sulfuric acid plants (36 FR 24876 ). Since then, EPA has issued dozens of NSPS regulations, primarily by source category. The requirements promote industrywide adoption of available pollution control technologies. However, because these standards apply only to new and modified sources, they promote extending

18960-493: The offset and credit market today. Trading on voluntary carbon markets was 300 MtCO 2 e in 2021. By comparison, the compliance carbon market trading volume was 12 GtCO 2 e, and global greenhouse gas emissions in 2019 were 59 GtCO 2 e. Currently several exchanges trade in carbon credits and allowances covering both spot and futures markets. These include the Chicago Mercantile Exchange , CTX Global,

19118-627: The original international compliance carbon markets emerged from the Kyoto Protocol , which established three mechanisms that enable countries or operators in developed countries to acquire offset credits. One mechanism was the Clean Development Mechanism (CDM), which expanded the concept of carbon emissions trading to a global scale, focusing on the major greenhouse gases that cause climate change : carbon dioxide (CO 2 ), methane , nitrous oxide (N 2 O), perfluorocarbons , hydrofluorocarbons , and sulfur hexafluoride . The Kyoto Protocol

19276-479: The past 30 years. A large majority of worldwide newly installed electricity capacity is now renewable. Renewable energy sources, such as solar and wind power, have seen significant cost reductions over the past decade, making them more competitive with traditional fossil fuels. In most countries, photovoltaic solar or onshore wind are the cheapest new-build electricity. From 2011 to 2021, renewable energy grew from 20% to 28% of global electricity supply. Power from

19434-516: The perceived value of association with these projects. Credits from a reputable organization may command a higher price. Some credits located in developed countries may be priced higher. One reason could be that companies prefer to back projects closer to their business sites. Conversely, carbon credits with older vintages tend to be valued lower on the market. Prices on the compliance market are generally higher. They vary based on geography, with EU and UK ETS credits trading at higher prices than those in

19592-571: The power generation sector with other sectors may increase flexibility: for example the transport sector can be coupled by charging electric vehicles and sending electricity from vehicle to grid . Similarly the industry sector can be coupled by hydrogen produced by electrolysis, and the buildings sector by thermal energy storage for space heating and cooling. Building overcapacity for wind and solar generation can help ensure sufficient electricity production even during poor weather. In optimal weather, it may be necessary to curtail energy generation if it

19750-439: The precedent of a 12-year review cycle for the test procedures. In February 2005, EPA launched a program called "Your MPG" that allows drivers to add real-world fuel economy statistics into a database on EPA's fuel economy website and compare them with others and with the original EPA test results. EPA conducts fuel economy tests on very few vehicles. Two-thirds of the vehicles the EPA tests themselves are randomly selected and

19908-488: The primary challenges for new developments. It is popular to repower old dams thereby increasing their efficiency and capacity as well as quicker responsiveness on the grid. Where circumstances permit existing dams such as the Russell Dam built in 1985 may be updated with "pump back" facilities for pumped-storage which is useful for peak loads or to support intermittent wind and solar power. Because dispatchable power

20066-837: The remaining third is tested for specific reasons. Although originally created as a reference point for fossil-fueled vehicles, driving cycles have been used for estimating how many miles an electric vehicle will get on a single charge. The 1970 CAA amendments provided for regulation of aircraft emissions ( 42 U.S.C.   § 7571 ), and EPA began regulating in 1973. In 2012, EPA finalized its newest restrictions on NOx emissions from gas turbine aircraft engines with rated thrusts above 26.7 kiloNewton (3 short ton-force ), meaning primarily commercial jet aircraft engines, intended to match international standards. EPA has been investigating whether to regulate lead in fuels for small aircraft since 2010, but has not yet acted. The 1990 CAA Amendments ( Pub. L.   101–549 § 222) added rules for

20224-564: The renewable energy sector. Globally in 2020 there are over 10 million jobs associated with the renewable energy industries, with solar photovoltaics being the largest renewable employer. The clean energy sectors added about 4.7 million jobs globally between 2019 and 2022, totaling 35 million jobs by 2022. Clean Air Act (United States) The Clean Air Act ( CAA ) is the United States' primary federal air quality law , intended to reduce and control air pollution nationwide . Initially enacted in 1963 and amended many times since, it

20382-551: The same power source. This improves upon the energy efficiency of most power plants. That is because these plants waste the energy generated as heat. Fuel efficiency projects replace a combustion device with one using less fuel per unit of energy provided. They can do this by optimizing industrial processes , reducing energy costs per unit. They can also optimize individual action , for example making it easier to cycle to work instead of driving. Industrial pollutants such as hydrofluorocarbons (HFCs) and perfluorocarbons (PFCs) have

20540-412: The same regardless of where they are emitted. The costs of reducing emissions vary widely by source. The cap ensures that the environmental goal is attained. As of 2022, 68 carbon pricing programs were in place or scheduled to be created globally. International programs include the Clean Development Mechanism , Article 6 of the Paris Agreement , and CORSIA . National programs include ETS systems such as

20698-585: The second largest in China. In Denmark, wind energy met more than 40% of its electricity demand while Ireland, Portugal and Spain each met nearly 20%. Globally, the long-term technical potential of wind energy is believed to be five times total current global energy production, or 40 times current electricity demand, assuming all practical barriers needed were overcome. This would require wind turbines to be installed over large areas, particularly in areas of higher wind resources, such as offshore, and likely also industrial use of new types of VAWT turbines in addition to

20856-527: The sector's increasing maturity and cost reductions, particularly in solar photovoltaic (PV), which accounted for 90% of total investments. China and the United States were the main recipients, collectively making up about half of all solar investments since 2013. Despite reductions in Japan and India due to policy changes and COVID-19 , growth in China, the United States, and a significant increase from Vietnam's feed-in tariff program offset these declines. Globally,

21014-418: The seed as is common today. Sweet sorghum may be a promising alternative source of bioethanol, due to its tolerance of a wide range of climates. Cow dung can be converted into methane. There is also a great deal of research involving algal fuel , which is attractive because algae is a non-food resource, grows around 20 times faster than most food crops, and can be grown almost anywhere. Geothermal energy

21172-613: The short term in certain scenarios. A major factor in future price models is the extent to which programs that support more permanent removals can influence future global climate policy. This could limit the supply of approvable offsets, and thereby raise prices. Demand for VCM offsets is expected to increase five to ten-fold over the next decade as more companies adopt Net Zero climate commitments. This could benefit both markets and progress on reducing GHG emissions. If carbon offset prices remain significantly below these forecast levels, companies could be open to criticisms of greenwashing . This

21330-451: The solar sector added 714 gigawatts (GW) of solar PV and concentrated solar power (CSP) capacity between 2013 and 2021, with a notable rise in large-scale solar heating installations in 2021, especially in China, Europe, Turkey, and Mexico. A photovoltaic system , consisting of solar cells assembled into panels , converts light into electrical direct current via the photoelectric effect . PV has several advantages that make it by far

21488-508: The standards used for controlling, reducing, and eliminating HAPs emissions from stationary sources such as industrial facilities. The 1970 CAA required EPA to develop a list of HAPs, and then develop national emissions standards for each of them. The original NESHAPs were health-based standards. The 1990 CAA Amendments ( Pub. L.   101–549 Title III) codified EPA's list, and required creation of technology-based standards according to "maximum achievable control technology" (MACT). Over

21646-551: The state does not adequately monitor requirements, the EPA may take control. The public may request to view the permits by contacting the EPA. The permit is limited to no more than five years and requires a renewal. One of the most public aspects of the Clean Air Act, EPA is empowered to monitor compliance with the law's many requirements, seek penalties for violations, and compel regulated entities to come into compliance. Enforcement cases are usually settled, with penalties assessed well below maximum statutory limits. Recently, many of

21804-532: The strict amendments, EPA Administrator William Ruckelshaus spent 60% of his time during his first term on the automobile industry, whose emissions were to be reduced 90% under the new law. Senators had been frustrated at the industry's failure to cut emissions under previous, weaker air laws. Major amendments were added to the Clean Air Act in 1977 (1977 CAAA) (91 Stat. 685, Pub. L.   95–95 ). The 1977 Amendments primarily concerned provisions for

21962-513: The sun and wind accounted for most of this increase, growing from a combined 2% to 10%. Use of fossil energy shrank from 68% to 62%. In 2022, renewables accounted for 30% of global electricity generation and are projected to reach over 42% by 2028. Many countries already have renewables contributing more than 20% of their total energy supply, with some generating over half or even all their electricity from renewable sources. The main motivation to replace fossil fuels with renewable energy sources

22120-468: The technology employing the most at almost 4 million. However, as of February 2024, the world's supply of workforce for solar energy is lagging greatly behind demand as universities worldwide still produce more workforce for fossil fuels than for renewable energy industries. In 2021, China accounted for almost half of the global increase in renewable electricity. There are 3,146 gigawatts installed in 135 countries, while 156 countries have laws regulating

22278-407: The ten biggest solar power stations are in China, including the biggest, Golmud Solar Park in China. Unlike photovoltaic cells that convert sunlight directly into electricity, solar thermal systems convert it into heat. They use mirrors or lenses to concentrate sunlight onto a receiver, which in turn heats a water reservoir. The heated water can then be used in homes. The advantage of solar thermal

22436-501: The term is not synonymous with low-carbon energy . Some non-renewable sources of energy, such as nuclear power , generate almost no emissions, while some renewable energy sources can be very carbon-intensive, such as the burning of biomass if it is not offset by planting new plants. Renewable energy is also distinct from sustainable energy , a more abstract concept that seeks to group energy sources based on their overall permanent impact on future generations of humans. For example, biomass

22594-426: The uncertainty associated with verifying the indirect value of carbon offsets. At the same time, uncertainty has caused some companies to become more skeptical about buying offsets . Emissions trading are now an important element of regulatory programs to control pollution, including GHG emissions. GHG emission trading programs exist at the sub-national, national, and international level. Under these programs, there

22752-484: The use of land for renewable installations. Like all mining, the extraction of minerals required for many renewable energy technologies also results in environmental damage . In addition, although most renewable energy sources are sustainable , some are not. Renewable energy is usually understood as energy harnessed from continuously occurring natural phenomena. The International Energy Agency defines it as "energy derived from natural processes that are replenished at

22910-502: The various markets they are traded in. There are several labels for one-tonne emission reductions, including " Verified Emission Reduction " or " Certified Emission Reduction ". The label depends on the particular program that certifies a reduction project. At COP27 , negotiators agreed to define offsets and credits issued under Article 6 of the Paris Agreement as " mitigation contributions " in order to discourage carbon neutrality claims by buyers. Certification organizations such as

23068-738: The voluntary carbon markets. In principle, it is possible to issue and purchase carbon offsets without reference to Article 6. It is possible that a multi-tier system could emerge with different types of offsets and credits available for investors. Companies may be able to purchase 'adjusted credits' that eliminate the risk of double counting. These may be seen as more valuable if they support science-based targets and net-zero emissions. Other non-adjusted offsets and credits could support claims for other environmental or social indicators. They could also support emission reductions that are seen as less valuable in terms of these goals. Uncertainty remains around Article 6's effects on future voluntary carbon markets. There

23226-484: The world's transport energy demand in 2022, up from 2.7% in 2010. Biojet is expected to be important for short-term reduction of carbon dioxide emissions from long-haul flights. Aside from wood, the major sources of bioenergy are bioethanol and biodiesel . Bioethanol is usually produced by fermenting the sugar components of crops like sugarcane and maize , while biodiesel is mostly made from oils extracted from plants, such as soybean oil and corn oil . Most of

23384-502: The world, depending on the cost of drilling. EGS projects have so far primarily been limited to demonstration plants , as the technology is capital-intensive due to the high cost of drilling. Marine energy (also sometimes referred to as ocean energy) is the energy carried by ocean waves , tides , salinity , and ocean temperature differences . Technologies to harness the energy of moving water include wave power , marine current power , and tidal power . Reverse electrodialysis (RED)

23542-622: The years, EPA has issued dozens of NESHAP regulations, which have developed NESHAPs by pollutant, by industry source category, and by industrial process. There are also NESHAPs for mobile sources (transportation), although these are primarily handled under the mobile source authorities. The 1990 amendments (adding CAA § 112(d-f)) also created a process by which EPA was required to review and update its NESHAPs every eight years, and identify any risks remaining after application of MACT, and develop additional rules necessary to protect public health. The New Source Performance Standards (NSPS) are rules for

23700-455: Was 1,360 GW. Only a third of the world's estimated hydroelectric potential of 14,000 TWh/year has been developed. New hydropower projects face opposition from local communities due to their large impact, including relocation of communities and flooding of wildlife habitats and farming land. High cost and lead times from permission process, including environmental and risk assessments, with lack of environmental and social acceptance are therefore

23858-522: Was built in 1982 in Hesperia, California by ARCO . The plant was not profitable and was sold eight years later. However, over the following decades, PV cells became significantly more efficient and cheaper. As a result, PV adoption has grown exponentially since 2010. Global capacity increased from 230 GW at the end of 2015 to 890 GW in 2021. PV grew fastest in China between 2016 and 2021, adding 560 GW, more than all advanced economies combined. Four of

24016-426: Was deemed to be insufficient. The Motor Vehicle Air Pollution Control Act ( Pub. L.   89–272 ) amended the 1963 Clean Air Act and set the first federal vehicle emissions standards, beginning with the 1968 models. These standards were reductions from 1963 emissions levels: 72% reduction for hydrocarbons , 56% reduction for carbon monoxide , and 100% reduction for crankcase hydrocarbons. . The law also added

24174-521: Was extended in 1959, 1960, and 1962 while Congress considered whether to regulate further. Beginning in 1963, Congress began expanding federal air pollution control law to accelerate the elimination of air pollution throughout the country. The new law's programs were initially administered by the U.S. Secretary of Health, Education, and Welfare , and the Air Pollution Office of the U.S. Public Health Service , until they were transferred to

24332-645: Was introduced in its basic form at COP11 in 2005 and has grown into a broad policy initiative to address deforestation and forest degradation. In 2015, REDD+ was incorporated into Article 5 of the Paris Agreement. REDD+ initiatives typically compensate developing countries or their regional administrations for reducing their emissions from deforestation and forest degradation. It consists of several stages: One, achieving REDD+ readiness; two, formalizing an agreement for financing; three, measuring, reporting, and verifying results; and four, receiving results-based payments. Over 50 countries have national REDD+ initiatives. REDD+

24490-544: Was originally developed in 1972 and used driving cycles designed to simulate driving during rush-hour in Los Angeles during that era. Until 1984, EPA reported the exact fuel economy figures calculated from the test. In 1984, EPA began adjusting city (aka Urban Dynamometer Driving Schedule or UDDS ) results downward by 10% and highway (aka HighWay Fuel Economy Test or HWFET) results by 22% to compensate for changes in driving conditions since 1972, and to better correlate

24648-541: Was questioned by the court in West Virginia v. EPA (2022) but restored by Congress with the Inflation Reduction Act of 2022 , which clarified that carbon dioxide is one of the pollutants covered by the Clean Air Act. Standards for mobile sources have been established pursuant to Section 202 of the CAA, and GHGs from stationary sources are controlled under the authority of Part C of Title I of

24806-540: Was the first federal legislation to permit the U.S. federal government to take direct action to control air pollution. It extended the 1955 research program, encouraged cooperative state, local, and federal action to reduce air pollution, appropriated $ 95 million over three years to support the development of state pollution control programs, and authorized the HEW Secretary to organize conferences and take direct action against interstate air pollution where state action

24964-663: Was to expire in 2020, to be superseded by the Paris Agreement. Countries are still determining the role of carbon offsets in the Paris Agreement through international negotiations on the agreement's Article 6. In November 2024, after years of deadlock, governments attending the COP29 conference in Baku , Azerbaijan agreed to rules on creating, trading and registering emission reductions and removals as carbon credits that higher-emission countries can buy, thus providing funding for low-emission technologies. The economics behind programs such as

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