Siobhan McCloskey

September 12, 2006

California's law for a "25 percent cut in carbon emissions by 2020" was approved by the legislature this week. The plan, which "faces a battle in the courts before it can go into effect," entails mandatory regulations, incentives and market-based mechanisms, as well as a system enabling companies to buy and sell carbon allowances. California, like many other state and local governments, is taking the initiative in addressing the problem of global warming in the absence of a national policy. California has taken the lead in many past environmental issues, such as clean air and greenhouse gas emissions from automobiles, which have then been copied by other states and the federal government.

Critics of California's plan say that the state's independent approach to dealing with global warming could hurt the economy by putting Californian companies at a disadvantage. Proponents counter that the law will encourage California to be a leader in developing new energy efficient technology that will be as much of an economic boom to the state as Silicon Valley.

For more information, please see Jad Mouawad & Jeremy Peters, California Plan to Cut Gases Splits Industry, N.Y. Times, September 1, 2006, at C1, C8.