ABSTRACT
This chapter focuses on two cases that better exemplify the creation of transnational green-economic regions (TGERs), the Regional Greenhouse Gas Initiative (RGGI) and the Western Climate Initiative (WCI). These TGERs formed carbon markets to give incentives to the transition to sustainable economies and energy efficiency while not sacrificing their local development. The chapter explains how carbon markets work, as well as several mechanisms such as the cap-and-trade system, common to RGGI and WCI. The chapter deals with several critiques to this transregional approach, which reveal some of the weaknesses of re-territorializing the provision of global public goods. The chapter presented the two operating carbon markets in North America, RGGI and WCI. Although different in scope, membership and instruments, both markets operate under the cap-and-trade system. RGGI has been successful in addressing its goals of managing CO2 from power sources. WCI has successfully started the auction process in one of its partners.
