8.4.3 Nitrous Oxide in Cap and Trade Systems

LPDD Recommendation: “When designing and implementing cap-and-trade programs, EPA and regional governments should incentivize nitrous oxide emission reductions from agricultural and livestock sources by providing offset credit for such reductions.”

Alberta’s Cap and Trade Program

Allows offset credits for reductions of nitrous oxide and other GHGs from agricultural sources, and has developed an offset protocol for estimating nitrous oxide reduction.

EU Emissions Trading Scheme

The EU’s Emissions Trading Scheme imposes nitrous oxide limits on the production of nitric, adipic, glyoxal, and glyoxylic acids.