Article
White Certificate Trading: A Dying Concept or Just Making is Debut?
Electricity Journal and Energy Policy Institute White Paper
(2018)
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 paper explains 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 are 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, this paper addresses the future potential for these certificates in the U.S. 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.
Keywords
- energy-saving certificates,
- white certificate,
- energy trading,
- clean power plan,
- renewable energy certificate
Disciplines
Publication Date
Spring April, 2018
Citation Information
Elizabeth Lokey Aldrich and Cassandra Koerner. "White Certificate Trading: A Dying Concept or Just Making is Debut?" Electricity Journal and Energy Policy Institute White Paper (2018) Available at: http://works.bepress.com/elizabeth_aldrich/26/