Congrats to California on continuing to lead the country in what we call "Green Possibilities."
Thankfully for America, California has some oil and gas industry, mostly refining, but the years of pollution in the LA basin have taught the populace that yes man can affect the environment both positively and negatively. Sadly those in the southern states where we live have largely yet to figure that out. In defense of the southern states oil and gas is a major business in Louisiana, Texas, and Oklahoma so they rightfully try to protect their jobs.
California is going to take a run at a modified cap and trade program.
The state's carbon auction is a key step in the
initiation of its "cap-and-trade" program, a policy where the state sets
a limit, or cap, on the amount of heat-trapping gases released by
manufacturers, oil refineries, electric utilities and other large
Those companies can then either reduce their
emissions or purchase carbon permits, also known as "allowances," on the
open market from companies that have extras - the "trade" part of cap
and trade. The number of allowances in the system will decline over
The cap-and-trade program, which initially covers
350 businesses, is a key component of AB 32, California's landmark 2006
law, which called for the state to cut its greenhouse gas emissions
back to 1990 levels by 2020. That's a reduction of about 15 percent.
"Our overall impact is small," said Mary Nichols,
chairwoman of the California Air Resources Board, the agency
implementing the program. "What we do will not solve the problem. But we
want to demonstrate that this type of system can work."
This effort is as we see it an attempt to monetize the cost of pollution to us all. If pollution is seen as a cost that affects us all, which it truly is, then the CEO running a multi-national or the local neighborhood woman's stock picking group will realize that reducing pollution can make you money.
We are very excited because we've always felt that the Americas(Canada included) with it's ability to design new technology quickly, could really profit from a world where unwise over-production of green house gases would be penalized and recycling and reuse of these gases was preferred and anointed.
If a world wide agreement was penned it would automatically make China need to drastically change the way it manufactures and hopefully protect the next great low labor manufacturing hubs of the 21st century such as India and parts of Africa from going down the same road of over pollution China used in the late 20th century and now
Thanks to Reuters for this article, California Takes Big Step in Limiting Greenhouse Gases, from which the italicized portions above are taken.
Here's the results of the first day of Carbon Trading in California
Here's a link to the California Program if you want more study
Here's an article on a California housing development that will be designed and built with lower carbon pollution in mind
Oh yeh if you study up on carbon trading you may find it can make you some $. There's money to be made in Going Green
Our Green Investments Portfolio for the week ending November 30th 2012.