Demand low for California pollution credits

AP News
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Posted: Aug 23, 2016 4:35 PM

SAN FRANCISCO (AP) — California's latest carbon auction has brought more bad news for Gov. Jerry Brown's landmark programs fighting climate change.

State officials announced Tuesday that 34 percent of the available carbon-emissions credits were sold as doubts about the survival of the state's carbon auctions weigh down investor demand.

California since 2012 has required companies that produce climate-changing pollution to buy pollution permits. They are auctioned quarterly and used to routinely generate hundreds of millions of dollars for the state.

The so-called cap and trade program is a keystone of the Democratic governor's efforts to reduce pollution by fossil fuels, and it is being watched closely around the world.

California's program is struggling this year against litigation by the state's chamber of commerce and opposition in the state Legislature.