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Options for Addressing Early Action Greenhouse Gas Reductions and Offsets in U.S. Federal Cap-and-Trade Policy

When implemented properly, an early action
component of a cap-and-trade program can reward
early actors while preserving or enhancing the
environmental outcomes of the cap-and-trade
program. If designed and implemented poorly,
however, early action credits can infl ate the
emissions cap and reduce the overall environmental
integrity of the program. This paper presents a
range of options for addressing early reductions and
discusses their implications.

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