Cap and Trade
California's cap-and-trade program is like a stock exchange for greenhouse gas emissions. It’s the first in the nation to span most types of industrial sources, from power plants to oil refineries. Revenues from pollution fees could amount to more than a billion dollars in the first year. But will it work?
Now we have a first glimpse of how California's experiment in carbon trading is working out. The state's first auction of industrial permits for greenhouse gases actually happened last week–but results were released on Monday.
Cap-and-trade will initially regulate the industrial sector and utilities. Eventually, fuels will be phased into the program, too. It's all part of AB 32, the law that requires California to bring greenhouse gas emissions back to 1990 levels by 2020. Here's a breakdown of where the emissions come from.
This week, California rolls out the heavy artillery in its attack on climate change with a program called “cap-and-trade.” It’s like a stock exchange for carbon emissions, where the state’s biggest polluters have to buy the right to emit greenhouse gases. It’s the most ambitious climate change policy in the country, but not everyone is happy with it.