China to Announce Cap-and-Trade Program to Limit Emissions
By JULIE HIRSCHFELD DAVIS and CORAL DAVENPORT
China will announce a landmark commitmentto limit and put a price on greenhouse gas emissions, a substantial step by the world's largest polluter.
The company said Thursday that it would seek to shave an additional $1 billion a year from the company’s costs by 2011.
The WP and LAT call the president's first budget "ambitious." Obama hopes to use the plan to make progress on health-care reform and move toward a cap-and-trade system for energy use. But the effort to "cut" (LAT), "slash" (NYT) or merely "trim" (WP) the deficit grabs the headlines.
Still more ambitious, flexible, and demanding in terms of government infrastructure is a cap-and-trade system, where sources in an area may trade pollution reduction responsibilities among themselves to meet an aggregate emissions cap for a given region. Under this system, the regulatory authorities decide on the aggregate level of allowable emissions for all the parties participating in the program (the "cap") and then it allocates to each party a portion of this amount in the form of "allowances," which are tradable rights to pollute. Once allowances are allocated, parties are prohibited from emitting more pollution than their allocation, unless they purchase additional allowances from another party.