Governor Newsom of California expands the cap-and-trade initiative, a plan designed to limit carbon emissions.
California Extends Cap-and-Trade Program to 2045
California Governor Gavin Newsom has signed a bill to extend the state's cap-and-trade program, aimed at reducing greenhouse gas emissions, through 2045. The program, now renamed the "cap and invest" program, sets a declining limit on total greenhouse gas emissions from major polluters.
Supporters of the extension, including Daniel Barad of the Union of Concerned Scientists, view it as crucial given federal rollbacks and attacks on California's regulatory authority. Barad also noted that the extension extends the program until 2045.
The cap-and-trade program does not set emissions limits for individual facilities. Instead, an industrial polluter can continue emitting the same amount of greenhouse gases over time so long as it has the right amount of credits or offsets. The cap applies to planet-warming emissions, not other pollutants impacting air quality.
Companies must reduce their emissions, buy allowances from the state or other businesses, or fund projects aimed at offsetting their pollution. The sales of these allowances fund climate-change mitigation, affordable housing and transportation projects, utility bill credits for Californians, and other programs.
Notably, Newsom has committed $1 billion in program revenue for the state's long-delayed high-speed rail project. He has also allocated $800 million for an affordable housing program, $250 million for community air protection programs, and $1 billion for the Legislature to decide on annually.
The extension of the cap-and-trade program has raised gas costs by about 26 cents per gallon, according to a February report. Republican state Sen. Tony Strickland criticizes the extension as economic sabotage due to its impact on costs. However, Democratic Assemblymember Jacqui Irwin defends the extension, stating it helps fight climate change, and the cost of inaction is immeasurable.
The "Cap and Invest" program also funds polluting organizations by requiring them to purchase emission allowances. This incentivizes them to invest in infrastructure upgrades to lower emissions. Sectors such as utilities like Pacific Gas & Electric, Southern California Edison, and San Diego Gas & Electric receive financing options for these upgrades.
Newsom has also signed a bill that would increase requirements for air monitoring in areas overburdened by pollution. This move is intended to ensure the effectiveness of the cap-and-trade program and other environmental initiatives in these areas.
In conclusion, the extension of California's cap-and-trade program is a significant step towards reducing greenhouse gas emissions and combating climate change. While it does have costs associated with it, supporters argue that the cost of inaction is far greater. The program's funds will be used to support various environmental, housing, and transportation projects, among others.
Read also:
- Russia, according to Zelensky, lacks the prowess for launching another significant offensive.
- Russia's Latest Peace Proposals for Donbas: New Diplomatic Landscape Emerges amid Alaska Summit, Potentially Opening Ceasefire Opportunities
- Amidst India's escalating climate crisis, transgender individuals continue to persevere
- Contentious Discussion Surrounding the Movie Release of "Planet of the Humans"
