Global Warming: What You Need to Know

Legislation

The Climate MATTERS Act
(Climate Market, Auction, Trust & Trade Emissions Reduction System)
Detailed Summary

Title I: Global Cooperation

International Negotiations

Title I directs the President to negotiate with other nations to develop cap and trade systems that are comparable to the U.S. cap and trade system. To encourage early participation, the President is authorized to enter into Premium Carbon Market Access Agreements that allow flexibility in setting the emissions caps in the initial agreements. In addition, recognizing the importance of reducing tropical deforestation in the fight against global warming, the President may also enter into agreements with countries that are not yet able to implement full cap and trade programs to reduce their emissions through international forest carbon activities that create International Forest Allowances, which are tradable on our carbon market.

Level Playing Field for American Workers

Beginning in 2015, importers of certain carbon-intensive goods from countries without comparable emissions limits will be required to purchase International Reserve Allowances to cover the emissions resulting from the production of those goods. Goods subject to this allowance requirement include primary goods such as iron, steel, aluminum, cement and paper and other manufactured items for consumption. Countries with de minimus greenhouse gases (GHG) and the least developed of developing countries are excluded from the international reserve allowance requirements and funds from the purchase of International Reserve Allowances go to mitigate the effect of climate change in disadvantaged communities in foreign countries.

Title II: Revenue Provisions

Emissions Cap

Title II imposes a nationwide emissions cap on GHG emissions that begins at 2005 levels of GHG in 2012 and declines to 39% below 2005 levels in 2030 until ultimately reaching an 80% reduction below 1990 levels by 2050. The cap reaches 86% of all...

Download the complete summary of the Climate MATTERS Act (PDF)

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