This 15th chapter of our outline addresses legal issues that may
arise in emissions trading.
(1) Legal Issues in US Carbon Trading
The trading of GHG emissions rights has various antecedents in
the United States, such as the leaded gasoline trading program, the
federal Acid Rain Program, allotments of ozone-depleting substances
pursuant to Montreal Protocol obligations, vehicle manufacturer
certification trading, California's RECLAIM trading scheme for
nitrogen and sulfur emissions, and, more recently, a federal
renewable fuels standard,1 and various statelevel
alternative energy portfolio standards. There are a number of legal
issues common to trading programs that must be considered, some of
which may need to be modified or clarified as applied to carbon
trading. These issues relate broadly to carbon trading programs
whether at the state, regional or federal level; however, much of
the experience and commentary on these issues is drawn from the US
federal context.
