The New Carbon Cycle

Canadian Premiers and New England Governors Met and Discussed Forming a Regional Carbon Cap-and-Trade System

According to an article in the Globe and Mail, the Eastern Canadian premiers and the New England governors have met and agreed to consider developing a regional cap-and-trade system to control the emission of greenhouse gases.  The premiers and governors said that they are moving toward a common market in energy and will have to find ways to share emission targets as well as power and transmission costs.

New Brunswick Premier Shawn Graham says he will host a workshop on the potential for developing a regional cap-and-trade program.  It is something of an about-face for the New Brunswick premier who indicated earlier he wasn't interested in such an approach.  Quebec Premier Jean Charest says a cap-and-trade program is inevitable, so the premiers and governors should take the lead on developing a system.

Several northeastern states are already well along in developing a regional carbon cap-and-trade system.  In time, the national governments will likely enact climate change regulation.  Until then, the provinces and states will be working on developing a cap-and-trade system for North America.

GAO Report Raises Question of US Insurers Preperation for Climate Change Impact

In a post on the Thompson & Knight LLP Law and Insurance blog, David White discusses a recent GAO report that challenges the US insurance companies on their actions to prepare for the impact of global warming and climate change.  The report states that the flood and crop insurers have not prepared for the potential losses they may incur with increasing temperatures.