FERC Carbon Pricing Policy Statement Will Unlock a New Era of Climate-Aware Energy Markets
WASHINGTON, D.C. : Today, the Federal Energy Regulatory Commission (FERC) released a long-awaited final policy statement on carbon pricing in wholesale energy markets.
The policy statement provides certainty to market operators that the Commission will give proposals which incorporate a state-determined carbon price due consideration.
Following is a statement from Gregory Wetstone, President and CEO of the American Council on Renewable Energy (ACORE):
“Today’s policy statement demonstrates an understanding by FERC leadership that the economic design of our nation’s wholesale energy markets is inseparable from our climate reality.
Pricing carbon not only sends market signals to emitting resources that they should retire, but also drives investment in new, low-carbon resources by helping them compete.
This statement, passed on a bipartisan basis, is also a testament to the power of the diverse group of power generators, trade associations, and think tank experts that called on FERC to examine such a policy exactly one year ago.
I encourage electricity market stakeholders to quickly begin assessing their options to develop carbon pricing proposals under this new framework.”