Early crediting and baseline protection

Despite the urgent need for early action to reduce greenhouse gas emissions, this brief is in part intended to alert readers to the potential negative implications of developing a credit for early action system. A poorly designed credit for early action system could prove to be ineffective environmentally, inefficient economically, and inequitable politically. It could potentially shift considerable wealth to some firms while at the same time imposing corresponding costs on the government or economy. Decisions regarding baseline protection and credit for early action should not be taken lightly or without a proper understanding of their implications.