State holds auction for pollution credits (California)

ABCLocal California 14 November 2012.

SACRAMENTO, Calif. (KFSN) — It’s California’s controversial contribution to the fight against climate change. Businesses that can’t meet the state’s new cap on pollution, can now trade with those that can. The goal is to reduce global warming, but the cap-and-trade program could translate to big money for cash-strapped California, perhaps as much as $1 billion in the first year alone.

 

In an eBay-like auction, California took bids for pollution credits from the state’s major industrial facilities like oil refineries. Under the landmark legislation, spelled out in AB32, the credits from the cap-and-trade program allow businesses to emit a certain amount of greenhouse gasses.

Bidding started at $10 per metric ton, which could net the state budget $1 billion in the first year. The new approach aims to stabilize, if not reduce, the effects of global warming…

(Editor’s note: This might interest our government – making money out of polluters – but the Mineral-energy complex would not like it)

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