VitalAccurateThinking

Calif. to cap greenhouse gas emissions

Calif. to cap greenhouse gas emissions

California would become the first state to impose a limit on all greenhouse gas emissions, including those from industrial plants, under a landmark deal reached Wednesday by Gov. Arnold Schwarzenegger and legislative Democrats.

The agreement marks a clear break with the Bush administration and puts California on a path to reducing its emissions of carbon dioxide and other greenhouse gases by an estimated 25 percent by 2020.

The bill still needs lawmakers' approval, but that appears likely, given that Democrats control the Legislature.

The deal gives Schwarzenegger a key environmental victory as he seeks re-election this fall.

"We can now move forward with developing a market-based system that makes California a world leader in the effort to reduce carbon emissions," the governor said in a statement.

The bill would require the state's major industries -— such as utility plants, oil and gas refineries, and cement kilns - to reduce their emissions of the pollutants widely believed to contribute to global warming.

The key mechanism driving the reductions would be a market program allowing businesses to buy, sell and trade emission credits with other companies.

As I wrote here, I am skeptical of pollution credit markets. The government and traders are the only ones who benefit from such a program. Also, California will just export their emissions outside their borders not really reduce the emissions.

Anyway, we will see what happens.

posted by Jim VAT @ 5:51 PM