Governor Jerry Brown together with other lawmakers presented a draft on Monday regarding an extension until 2030 for their cap and trade program. This move aligns with one of the state’s core missions which is that of curbing greenhouse gas emissions for the sake of climate change.
The Proposal for a New Cap and Trade Program Contains a Compromise for Oil Businesses
Monday’s plan stipulates the way pollution allowances and offsets can be streamlined to render cleaner environmental results. Carbon emitters, utilities, and refineries will all experience an impact coming from these regulations. Through them, the California Air Resources Board gains the power to control carbon price cap to encourage climate change.
However, the plan presented itself with a compromise to satisfy oil companies as well. Local air districts will no longer have the authority to constrain businesses to additional carbon emission restrictions on polluters. Lawmakers annexed a companion bill with this draft with the sole purpose to slash air pollution in the region.
However, before this plan can become official, it is going to need a majority of votes. There are chances for lawmakers to cast their ballots as soon as Thursday. The reform of the cap and trade program needs two-thirds of lawmakers to decide in its favor and pass.
California Intends to Slash 40% of Greenhouse Gas by 2030
This program initiated a limit on how much greenhouse gas a state can discharge. In case utilities, oil companies, ports and other parties that pollute require more carbon emissions to stay in business, there’s a solution that comes with a cost. They have to purchase allowances which in their turn can be traded with other entities.
This cap and trade bill was created to dissuade polluters from harming the environment without short-term consequences. All the raised funds are supporting efforts of greenhouse gas reduction. The goal of this program is to cut harmful emissions by 40% based on the levels registered in 1990. The deadline is 2030.
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