Environment Forum
Global environmental challenges
Will California’s carbon market spur cleantech growth?
(This article by Felicity Carus first appeared on Clean Energy Connection and has been edited for length. Any opinions expressed are her own.)
Before California regulators announced they unanimously approved regulations for a cap and trade market on Thursday, the chair of the California Air Resources Board made much ado about the impact it would have on the development of clean technology in the state.
Chairwoman Mary Nichols said in her opening remarks : “Cap and trade sends a policy signal to the market and guarantees that California will continue to attract the lion’s share of investment in clean technology.”
Unlike a public meeting last December, when there were less than a handful of opposing voices, opponents of cap and trade from steel unions and oil refineries attended in great numbers this time.
BP America and the Western States Petroleum Association were among those who lined up for their 3 minutes in front of the board to complain about the “10 percent haircut” for oil refineries because the benchmarking gives free allocation for only up to 90 percent of emissions.
The board has this year introduced a best in class benchmarking system so that at least one installation in each sector will be allocated 100 percent allowances.
Everyone has been focusing on cars to reduce emissions for the last 30 years, and for good reason. At the same time, these low emission cars have been driving past homes in the northeast belching out black smoke from their chimneys from burning oil for heat and hot water. Delivering natural gas to everyone in the northeast is the single biggest thing we can do to reduce emissions. And natural gas is home grown, we create jobs and keep the money at home, and reduce carbon emissions. Solar and wind are not prime yet.