California’s “Greenhouse Gas Reduction Fund” was designed specifically to collect and invest proceeds from the State’s cap-and-trade program, funding environmental projects and disadvantaged community programs.
Since the program’s onset, $25B in proceeds have thus far been deposited into the fund, and have been directed into 75 programs across 23 state agencies that are delivering environmental and public health benefits, with 73% of funding directed at disadvantaged &low-income communities.
Case Study
Emissions Markets as a Successful Policy Tool.
The NOx Budget Trading Program, implemented in the eastern US in 1999, achieved significant reductions in NOx emissions from power plants and industrial sources. By 2008, NOx emissions had decreased by approximately 60% compared to 1990 levels, leading to improvements in air quality and public health.
The Acid Rain Program, established in the US in 1990, successfully reduced SO2 emissions from power plants by over 50% compared to 1980 levels. This reduction significantly decreased acid rain and improved air quality.