John McCain Will Foster Rapid and Clean Economic Growth
John McCain Believes An Effective And Sustainable Climate Policy Must Also Support Rapid Economic Growth. John McCain will use a portion of auction proceeds to reduce impacts on low-income American families.
The McCain plan will accomplish this in part by incorporating measures to mitigate any economic cost of meeting emission targets, including:
Trading Emission Permits To Find The Lowest-Cost Source Of Emission Reductions.
Permitting “Banking” And “Borrowing” Of Permits So That Emission Reductions May Be Accelerated Or Deferred To More Economically Efficient Periods.
Permitting Unlimited Initial Offsets From Both Domestic And International Sources.
Effectively Integrating U.S. Trading With Other International Markets, Thereby Providing Access To Low-Cost Permit Sources.
Establishing A Strategic Carbon Reserve As A National Source Of Permits During Periods Of Economic Duress.
Early Allocation Of Some Emission Permits On Sound Principles. This will provide significant amount of allowances for auctioning to provide funding for transition assistance for consumers and industry.
It will also directly allocate sufficient permits to enable the activities of a Climate Change Credit Corporation, the public-private agency that will oversee the cap and trade program, provide credit to entities for reductions made before 2012, and ease transition for industry with competitiveness concerns and fewer efficiency technology options.
A commission will also be convened to provide recommendations on the percentage of allowances to be provided for free and the percentage of allowances to be auctioned, and develop a schedule for transition from allocated to maximum auctioned allowances.
Cap-and-trade system will also work to maximize the amount of allowances that are auctioned off by 2050.