All signs are that 2009 will be an active and potentially pivotal year for national climate policy. Both President Obama and Congressional leadership have indicated their desire to enact a national carbon cap-and-trade program. From the point of view of climate change science, this could not happen too soon. In order to keep global temperature rise to less than two degrees Celsius, the U.S. must turn around its carbon pollution curve-currently rising several percent a year due to ever-growing fossil fuel dependence-within the next five years. Also, the rest of world-whose emissions are also growing-is looking to the U.S., the world's largest polluter, for leadership.

Prior to 2009, the Energy Foundation's Climate Program focused primarily on the state and regional levels. Our grantees' successes have laid the groundwork for the current federal debate. Last year, our grantees were instrumental in achieving the following results:

• In December, after more than two years of workshops, hearings, and negotiations, the California Air Resources Board unanimously adopted its Scoping Plan for implementing AB 32. This is probably the world's most detailed and ambitious plan for achieving economy-wide greenhouse gas reductions.
• In September, the Western Climate Initiative (WCI) issued design recommendations for the country's first multi-sector carbon cap and trade program. The WCI calls for economy-wide greenhouse gas reductions of 15 percent below 2005 levels by 2020. Individual states are now working towards implementation.
• The Regional Greenhouse Gas Initiative (RGGI), the nation's first CO2 cap-and-trade program and the world's first substantial carbon allowance auction, went into effect on January 1, 2009. The first three auctions netted over $260 million in revenue that will be distributed among the ten participating states for energy efficiency and clean energy technology investments.
• Between RGGI, the WCI, the six-state Midwest Governors' Greenhouse Gas Accord, and Florida, 24 states are now working on cap-and-trade.

We are in the midst of an historic period of transition towards a low-carbon energy future. We must seize the opportunity.