Climate change is a pressing global issue, and it is the responsibility of lawmakers to create regulations that promote sustainability. In 2009, Congress passed the Waxman-Markey Bill (also known as the American Clean Energy and Security Act) to develop a comprehensive approach to reducing greenhouse gas emissions.
The Waxman-Markey Bill sought to propose a “cap-and-trade” system. This system would limit emissions of harmful gases from industry by setting a “cap”, or limit, on the amount of these gases that could be released. Companies that exceeded this cap would have to purchase and trade credits, or “permits”, which could be sold in an open market. Consequently, those that exceeded the cap would be financially incentivised to reduce their emissions, while those doing well would be rewarded financially.
The bill also addressed other issues, such as establishing a renewable electricity standard, developing a national low-carbon fuel standard, and offering incentives for those who made their homes and businesses energy efficient. It also sought to ensure that the costs of transitioning to greener energy were evenly spread out in order to maximize benefits and minimize any potential for economic strain.
Although the Waxman-Markey Bill passed in the House of Representatives in 2009, it did not pass in the Senate and ultimately failed to become law. Nonetheless, the goal of this bill set an example for future policies on climate change. As the importance of conserving the planet for future generations becomes increasingly apparent, governments must seek to develop multi-pronged strategies to address this issue with innovative solutions, such as the “cap-and-trade” system proposed in the Waxman-Markey Bill.