California approves carbon market rules

Reuters News
Posted: Oct 20, 2011 8:33 PM
California approves carbon market rules

SACRAMENTO (Reuters) - California regulators on Thursday approved final regulations for a carbon market that is one of the biggest U.S. responses to climate change.

The California Air Resources Board voted unanimously to adopt the market regulations, which officials said are a critical component to achieve the state's goal of cutting carbon emissions to 1990 levels by 2020 -- about a 22 percent reduction from forecasted business-as-usual output.

The state believes the market for greenhouse gases, which starts in 2013, will let it address global warming and become the center of alternative energy industries, like solar, although some businesses fear the plan will raise costs while the economy already is suffering.

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(Reporting by Rory Carroll of Point Carbon, editing by Peter Henderson at Reuters; Editing by Gary Hill)