Amount of Reductions Due to Cap-and-Trade

Several parties suggest that, while cap-and-trade is likely to provide only a relatively small portion of the needed emission reductions in the natural gas sector, this approach could still lead to greater reductions overall than would occur with reliance only on direct emission reduction measures. NRDC/UCS argue that, while they expect the majority or reductions to be achieved through energy efficiency programs and performance standards, a cap-and-trade program could provide a "backstop" for intensity-based programs to ensure that emission reductions are achieved. NRDC/UCS urge that both regulatory policies and performance standards be expanded, and that a cap-and-trade program be utilized to reduce emissions. Environmental Council believes that "much of the expected emissions reductions from a natural gas sector cap and trade system probably could be (and probably will be) realized through existing state and federal policies to increase natural gas efficiency and to promote alternatives to natural gas."