Cap-and-trade is coming to California. The market-based system intended to cut greenhouse gas emissions is the key part of the Golden State’s effort, set into law four years ago, to cut its emissions to 1990 levels by 2020. Yesterday the California Air Resources Board finally approved the complex set of rules, which will go into effect in 2012.
Power plants, refineries and other industrial facilities that emit carbon dioxide and can’t cut their emissions by the required amount will be able to obtain pollution allowances from the state or buy them from other emitters with excess allowances. [Wall Street Journal]
Cap-and-trade is widespread in Europe, but California‘s plan would be the first large-scale, legally mandated version of this idea to get going in the United States.
“We’re inventing this,” said Mary Nichols, chairwoman of the state’s air quality board. “There is still going to be quite a bit of action needed before it becomes operational.” She said California is trying to “fill the vacuum created by the failure of Congress to pass any kind of climate or energy legislation for many years now.” [USA Today]