World’s Second-largest Carbon Market Arrives in California

Written by Paul Mackie on . Posted in Learn, The Wonk Room

The world is watching what California is doing, Louis Blumberg, climate change director for the state at The Nature Conservancy environmental group, told Reuters.

This after California on Thursday approved rules for a multibillion-dollar carbon market, in what proponents hope and detractors fear will be a turning point for the United States toward building a national program to address global warming.

The rules adopted by the Air Resources Board, the state’s climate change regulator, limit emissions of carbon dioxide and other greenhouse gases and let power plants, factories, and eventually refiners and others to trade permits to pollute in a program generally known as cap-and-trade.

After Congress failed to pass a climate change law last year, California is the vanguard of the nation’s effort to address global warming and its bid to build alternative energy and related industries.

California has mandated that a third of its electricity come from renewable sources like solar and wind. It is also encouraging “low carbon” auto fuels, like some biofuels and natural gas, and, new on Thursday, approved rules for the carbon market.

California will become the second-largest carbon market in the world, following a European system. Point Carbon, a Thomson Reuters company, forecasts the market will grow from $1.7 billion in 2012 to nearly $10 billion in 2016.

California’s move could rank with U.S. efforts decades ago to clean up air and water, and could be looked upon in the future as the moment when the United States started seriously building a program for climate change.

Source: Reuters

Photo by: Ian Shive/The Nature Conservancy (View of the Golden Gate Bridge in San Francisco.)

Tags: , , , ,

Trackback from your site.

Leave a comment

About Planet Change

Planet Change is a Nature Conservancy blog site designed to share stories about actions the Conservancy and others around the world are taking to fight carbon pollution and the impacts of climate change, and to help people feel the connections between climate change and their daily lives and understand actions they can take.

The Nature Conservancy