{"id":6993,"date":"2022-05-15T16:52:08","date_gmt":"2022-05-15T16:52:08","guid":{"rendered":"https:\/\/www.africa-press.net\/botswana\/?p=6993"},"modified":"2022-05-15T15:37:11","modified_gmt":"2022-05-15T15:37:11","slug":"california-19bn-carbon-market-not-good-enough-to-curb-emissions","status":"publish","type":"post","link":"https:\/\/www.africa-press.net\/botswana\/all-news\/california-19bn-carbon-market-not-good-enough-to-curb-emissions","title":{"rendered":"California $19Bn Carbon Market Not Good Enough To Curb Emissions"},"content":{"rendered":"<p><span style=\"color: #ff6600\"><strong>Africa-Press &#8211; Botswana. <\/strong><\/span><b>California\u2019s carbon market was supposed to be a model for the US, harnessing the power of capitalism to fight climate change in the world\u2019s fifth-biggest economy.<\/b><\/p>\n<p>But nearly 10 years after \u201ccap and trade\u201d began, there\u2019s little proof the system has had much direct impact on curbing planet-warming pollutants. California has seen big cuts in greenhouse gas emissions \u2014 but such gains have little to do with the much-vaunted carbon market. As officials debate how to reach the state\u2019s goal of zeroing out emissions by 2045, critics on both sides of the political spectrum say the market isn\u2019t working.<\/p>\n<p>\u201cThe California cap-and-trade program is really a failed experiment in regulation,\u201d said Jim Walsh, policy director for the Food &amp; Water Watch environmental group, which says the system lets polluters pay to keep polluting. \u201cIt\u2019s done little if anything to address the climate crisis.\u201d<\/p>\n<p>The issues with California\u2019s carbon-curbing initiative in some ways echo those of Europe, whose own market languished for years before reforms gave it greater strength. The US example may offer lessons to China, which just started its own program after years of study.<\/p>\n<p>California\u2019s cap-and-trade system sets an annual limit\u2014the cap\u2014on the amount of emissions the state\u2019s economy can produce. The cap gets tighter every year, lowering emissions. Companies buy an \u201callowance\u201d for each ton they emit, purchasing these permits through quarterly state auctions or from a secondary market. Allowances in that marketplace are trading at $30.73, up about 50% in the last year.<\/p>\n<p>Two big issues, many critics contend, undermine the system. The cap on emissions has never been tough enough to force much change on its own, even with efforts to tighten it. Oil refiners and other companies have spent more than $19 billion over the years on auctioned permits to emit greenhouse gases. The expense gets baked into the price of their products, boosting gasoline prices an estimated 24 cents per gallon, according to Argus Media, in a state with the nation\u2019s priciest fuel. But those costs haven\u2019t done much to lower emissions.<\/p>\n<p>\u201cWe\u2019re paying, but we\u2019re not getting the results we wanted,\u201d said state Senator Brian Dahle, whom the state Republican Party has endorsed for governor this year. He wants the program audited as the state grapples with an affordability crisis that may be pushing some residents to leave. \u201cIt\u2019s driving up the cost of all goods in California, and if you\u2019re on a fixed income or hourly wage, you\u2019re feeling the pain right now,\u201d Dahle said.<\/p>\n<p>At the same time, other California climate programs that take a more direct approach \u2014 ordering specific industries to change their ways \u2014 have had a measurable impact on emissions. That\u2019s particularly true in the electricity industry, whose rapid shift to renewable power has produced the state\u2019s biggest emission cuts.<\/p>\n<p>The result is that a program once considered a centerpiece of California\u2019s climate fight is underperforming.<\/p>\n<p>California officials released a report Tuesday with four proposals for eliminating net emissions by either 2045 or 2035, with the earlier date floated by Governor Gavin Newsom and favored by environmentalists. The proposals don\u2019t specify which programs will be required to meet either deadline, but the report notes that cap-and-trade will probably cut emissions less in this decade than previously expected.<\/p>\n<p>\u201cIt certainly is not up to par for being a driver of deep decarbonization,\u201d said Chris Busch, research director at consulting firm Energy Innovation.<\/p>\n<p>California\u2019s emissions have fallen 6.5% since 2013, when the state started requiring companies to pay to pump greenhouse gases into the atmosphere. Yet the big declines aren\u2019t from cap and trade. California\u2019s electric utilities, for example, slashed their emissions 36% from 2013 through 2019 due to a state law that forces them to use more renewable power, shifting from fossil fuels on a timeline set by the legislature. The first version of that law passed a decade before the carbon market opened.<\/p>\n<p>Cars, trucks and other transport represent the state\u2019s single biggest source of greenhouse gases, and since 2015 the cap-and-trade system has covered the fuel they burn. Transportation emissions in 2019, before Covid-19 hobbled the economy, were virtually identical to 2015, after rising for two years and falling for two. Officials credit the progress on stricter fuel-efficiency standards, electric vehicle incentives and more biofuel use\u2014all due to state programs other than cap and trade.<\/p>\n<p>European Example<\/p>\n<p>The European Union launched a similar market in 2005, and the emissions it covers have since dropped by about a third. It didn\u2019t always go smoothly. The global financial crisis in 2008 produced a glut of permits and tanked prices, which plunged from a pre-crisis high of 31 euros to 2.50 euros. A set of fixes to introduce automatic permit supply control, limiting any potential glut, restored credibility. Permits now trade above 80 euros.<\/p>\n<p>China, meanwhile, started its national carbon trading scheme last year. It is the largest market for emissions, covering about 4.5 billion tons from the country\u2019s power sector, and there are plans to expand to other industries including metals and airlines in the coming years.<\/p>\n<p>Like Europe, California\u2019s system has faced oversupply. Many companies covered by the system get some allowances for free in an effort to limit the impact to consumers. In February, an advisory committee report warned that companies have bought and held on to so many allowances\u2014\u201cbanking\u201d them for future use\u2014that the state is in danger of missing its 2030 target of cutting emissions 40% below 1990\u2019s level. The number of banked allowances, the report said, is larger than the emissions cuts expected from the program through that year.<\/p>\n<p>The California Air Resources Board, which oversees the program, says banked allowances should be used up well before 2030.<\/p>\n<p>The agency has tweaked cap and trade before and plans to revisit the program again next year. The cap has already been tightened\u2014it now shrinks 4% per year compared to roughly 2% before 2021. Board Chair Liane Randolph said in an interview that she wants to see how those changes play out before considering more.<\/p>\n<p>\u201cWe have a huge suite of strategies, and I don\u2019t think we can leave any of those strategies on the table,\u201d she said.<\/p>\n<p><strong>For More News And Analysis About <a href=\"https:\/\/www.africa-press.net\/botswana\">Botswana<\/a> Follow <a href=\"https:\/\/www.africa-press.net\/\">Africa-Press<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Africa-Press &#8211; Botswana. California\u2019s carbon market was supposed to be a model for the US, harnessing the power of capitalism to fight climate change in the world\u2019s fifth-biggest economy. But nearly 10 years after \u201ccap and trade\u201d began, there\u2019s little proof the system has had much direct impact on curbing planet-warming pollutants. California has seen [&hellip;]<\/p>\n","protected":false},"author":84,"featured_media":6992,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2,6,8,16],"tags":[233,237,234],"class_list":["post-6993","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-all-news","category-files","category-homepage-english","category-twitter","tag-africa-press","tag-africa-press-botswana","tag-botswana"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.1 (Yoast SEO v27.0) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>California $19Bn Carbon Market Not Good Enough To Curb Emissions - Botswana<\/title>\n<meta name=\"description\" content=\"California\u2019s carbon market was supposed to be a model for the US, harnessing the power of capitalism to fight climate ...\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.africa-press.net\/botswana\/all-news\/california-19bn-carbon-market-not-good-enough-to-curb-emissions\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"California $19Bn Carbon Market Not Good Enough To Curb Emissions\" \/>\n<meta property=\"og:description\" content=\"California\u2019s carbon market was supposed to be a model for the US, harnessing the power of capitalism to fight climate ...\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.africa-press.net\/botswana\/all-news\/california-19bn-carbon-market-not-good-enough-to-curb-emissions\" \/>\n<meta property=\"og:site_name\" content=\"Botswana\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/AfricaPressTunisiaa\" \/>\n<meta property=\"article:published_time\" content=\"2022-05-15T16:52:08+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/static.africa-press.net\/botswana\/sites\/38\/2022\/05\/img-62811e107d821.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"582\" \/>\n\t<meta property=\"og:image:height\" content=\"327\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"cfeditoren\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"cfeditoren\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"5 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.africa-press.net\/botswana\/all-news\/california-19bn-carbon-market-not-good-enough-to-curb-emissions#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.africa-press.net\/botswana\/all-news\/california-19bn-carbon-market-not-good-enough-to-curb-emissions\"},\"author\":{\"name\":\"cfeditoren\",\"@id\":\"https:\/\/www.africa-press.net\/botswana\/#\/schema\/person\/068c7ab4e9634ae78ec5d54ec46598bb\"},\"headline\":\"California $19Bn Carbon Market Not Good Enough To Curb Emissions\",\"datePublished\":\"2022-05-15T16:52:08+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.africa-press.net\/botswana\/all-news\/california-19bn-carbon-market-not-good-enough-to-curb-emissions\"},\"wordCount\":1049,\"commentCount\":0,\"image\":{\"@id\":\"https:\/\/www.africa-press.net\/botswana\/all-news\/california-19bn-carbon-market-not-good-enough-to-curb-emissions#primaryimage\"},\"thumbnailUrl\":\"https:\/\/static.africa-press.net\/botswana\/sites\/38\/2022\/05\/img-62811e107d821.jpg\",\"keywords\":[\"Africa Press\",\"Africa Press-Botswana\",\"Botswana\"],\"articleSection\":[\"all news\",\"files\",\"homepage-english\",\"twitter\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/www.africa-press.net\/botswana\/all-news\/california-19bn-carbon-market-not-good-enough-to-curb-emissions#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.africa-press.net\/botswana\/all-news\/california-19bn-carbon-market-not-good-enough-to-curb-emissions\",\"url\":\"https:\/\/www.africa-press.net\/botswana\/all-news\/california-19bn-carbon-market-not-good-enough-to-curb-emissions\",\"name\":\"California $19Bn Carbon Market Not Good Enough To Curb Emissions - 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