Connect with us

Hi, what are you looking for?

CleanTechnica

Cap And Trade

California to Raise Billions/Year from Cap-and-Trade

 

California’s starting a state cap-and-trade system to help address global warming later this year. A new report from the state’s Legislative Analyst’s Office finds that the program could be raising up to $14 billion.

The money will be raised from CO2 pollution credits. Auctioning begins this fall and it’s expected that $1 billion to $3 billion will be raised in 2012 and 2013 as the program gets rolling.

Currently, the California state budget deficit is at $9 billion. However, even if the surplus from the cap-and-trade program is greater than the deficit, that doesn’t ensure that it will cut the deficit to zero, since the money raised from the program must be used for projects that are themselves related to cutting greenhouse gas emissions. Still, Governor Jerry Brown’s budget for the coming fiscal year includes $1 billion in revenue from the program, and a considerable amount of money from the program could go towards California’s ambitious high-speed rail plans.

California, under the Global Warming Solutions Act of 2006, has committed to cutting its greenhouse gas emissions 80% by 2050 (below 1990 levels).

Cap-and-trade, originally dreamt up by business interests and used legislatively by the George H.W. Bush administration starting in 1990 to stop acid rain, has been used by Europe and the Northeastern U.S. for years to cut global warming pollution. Programs have also now been implemented or approved in Australia, China, New Zealand, and other places.

The Northeastern U.S. cap-and-trade program under the Regional Greenhouse Gas Initiative (RGGI) has been hugely successful, as we’ve written many times here on CleanTechnica. In fact, the biggest problem related to the program has actually been the use of RGGI funds for general state purposes (such as reducing state deficits) rather for the clean energy and energy efficiency programs the money is supposed to go to. Hopefully, that doesn’t become an issue in California. Overall, though, RGGI has shown us that cap-and-trade cuts CO2 emissions, saves citizens money through improved energy efficiency, and creates jobs. California has a lot to look forward to!

Source: Yale Environment 360
Image: California flag via shutterstock

 
 
 
Appreciate CleanTechnica’s originality and cleantech news coverage? Consider becoming a CleanTechnica Member, Supporter, Technician, or Ambassador — or a patron on Patreon.
 

Don't want to miss a cleantech story? Sign up for daily news updates from CleanTechnica on email. Or follow us on Google News!
 

Have a tip for CleanTechnica, want to advertise, or want to suggest a guest for our CleanTech Talk podcast? Contact us here.
Advertisement
 
Written By

Zach is tryin' to help society help itself one word at a time. He spends most of his time here on CleanTechnica as its director, chief editor, and CEO. Zach is recognized globally as an electric vehicle, solar energy, and energy storage expert. He has presented about cleantech at conferences in India, the UAE, Ukraine, Poland, Germany, the Netherlands, the USA, Canada, and Curaçao. Zach has long-term investments in Tesla [TSLA], NIO [NIO], Xpeng [XPEV], Ford [F], ChargePoint [CHPT], Amazon [AMZN], Piedmont Lithium [PLL], Lithium Americas [LAC], Albemarle Corporation [ALB], Nouveau Monde Graphite [NMGRF], Talon Metals [TLOFF], Arclight Clean Transition Corp [ACTC], and Starbucks [SBUX]. But he does not offer (explicitly or implicitly) investment advice of any sort.

Comments

You May Also Like

Clean Transport

If all goes according to plan, mobile hydrogen fueling stations will solve the chicken-and-egg conundrum for fuel cell trucks in USA.

Biofuels

At the coal face of a conference that involved governmental figures, academics, logistics customers and OEMs, the detailed technical conversations are almost all about...

Batteries

In late summer, it’s not uncommon for a big storm to send a gush of water down an arroyo, a dry streambed that gets...

Climate Change

If you believe some negative stereotype about a group and their risk profile, ditch it. It's wrong, and it doesn't apply to the person...

Copyright © 2023 CleanTechnica. The content produced by this site is for entertainment purposes only. Opinions and comments published on this site may not be sanctioned by and do not necessarily represent the views of CleanTechnica, its owners, sponsors, affiliates, or subsidiaries.