A California proposal to strengthen one of its landmark climate policies could spur growth in the green energy economy worldwide, analysts said.
Proposed changes to California’s carbon market unveiled Tuesday are likely to increase costs for facilities that emit greenhouse gases, giving them a new financial incentive to reduce emissions through solar panels, carbon capture and storage systems and other technologies.
“This is going to really spur long-term investment decisions in a way that’s really meaningful for climate change,” said Kyle Meng, an environmental economist at the University of California, Santa Barbara. The proposed changes tell California-regulated businesses “they can save money for the next 20 years by going lower carbon.”
California through its carbon market sets a yearly limit on statewide greenhouse gas emissions and forces top polluters to buy and submit pollution permits for each ton emitted.
