Sacramento, CA — California is now the first state to implement a “cap-and-trade” program.
The program is designed to provide financial incentives for companies to reduce its greenhouse gas emissions. The Associated Press reports that the California Air Resources Board voted unanimously yesterday to adopt the final draft of the “cap-and-trade” plan.
The plan is a key part AB 32, which seeks to reduce greenhouse gas emissions to 1990 levels by 2020. Implementation begins next year, but compliance will start in 2013. The first round will target the heaviest polluters, and the standards will gradually increase over the coming years. Companies will be able to buy permits that can be sold or purchased on the open market.
Numerous business organizations have voiced opposition to cap-and-trade, fearing that it could result in some companies closing their doors.
AB 32 was signed by former Governor Arnold Schwarzenegger in 2006. It has been embraced by Governor Jerry Brown.