White Certificate Trading:  A dying concept or just making its debut?

Are you curious how market mechanisms can be used to promote energy efficiency? Check out the paper entitled “White Certificate Trading:  A dying concept or just making its debut?” published with the Energy Policy Institute. Research from this project was also published as a three-part series in Electricity Journal.

Abstract:

Energy-saving certificate trading programs within the U.S. have not had the success of their counterparts abroad due to the energy efficiency reduction targets not being stringent enough to incite trading.  Programs exist in Italy, Denmark, France, the U.K., and Australia, and each is unique in what it allows to qualify, its units, and other details.  The Italian market is the most robust in terms of volumes traded, but programs in Australia are strong and growing.  This presentation will explain the current market status and trends in these white certificate markets and will address the major challenges to trading white certificates, identify why these obstacles exist, and then discuss how successful white certificate markets have addressed these potential problems. The challenges that will be addressed include the definition of a white certificate (including whether it is real, additional, permanent, verifiable, and enforceable), who owns them, and how they are tracked. Finally, the future potential for these certificates in the U.S. is discussed. A promising development that could affect implementation of a white certificate-type instrument is the inclusion of an instrument called an Emission Rate Credit in the proposed Clean Power Plan.  Other potential drivers include Energy Efficiency Resource Standards and voluntary markets.  

Author’s Biographies:

Elizabeth Lokey Aldrich, M.S., Ph.D.

Elizabeth Lokey Aldrich, M.S., Ph.D.

Elizabeth Lokey Aldrich is an expert in the field of renewable energy and carbon markets whose research has been published as 20 peer-reviewed articles, four book chapters, and a book on renewable energy development in Latin America. She is founder of Lokey Carbon Concepts, which does commissioned reports and helps businesses navigate greenhouse gas legislation.  She previously worked as a Senior Consultant for Camco Clean Energy, an Assistant Professor at Boise State University, and an energy analyst at the National Renewable Energy Laboratory, Rocky Mountain Institute, E Source, and Emerging Energy Research.  She was a National Science Foundation Fellow while she earned her Ph.D. at the University of Colorado.  

 

Cassandra L. Koerner, M.P.A., M.A.

Cassandra L. Koerner, M.P.A., M.A.

Cassandra Koerner currently works in the technical analysis section at the Idaho Public Utilities Commission, with a central focus on energy efficiency and demand side management topics. She holds a Master of Public Administration from Boise State University (2012) and a Master of Arts in political science and environmental policy from Colorado State University (2017). She earned her Bachelor of Science degree in natural resource conservation from the University of Montana (2005). In addition to her education, she brings years of experience working in the public sector and as a private contractor on several regional environmental impact projects as a researcher, technical writer, and budget manager. Her involvement with forestry-related inquiries early in her career provided a broad scientific framework on which to build her policy investigations. She has published articles and book chapters regarding nuclear perceptions and technology, renewable energy in the west, carbon sequestration, and international carbon markets, as well as general energy and environmental issues.