Brookings Institution names cap-and-trade an 'Innovation to Watch'
The Brookings Institution has recognized California’s cap-and-trade program for greenhouse gas emissions reduction as a State Innovation to Watch for 2013.
The Brookings Top 10 State and Metropolitan Innovations to Watch program is in its second year, and compliance with the cap-and-trade program began January 1, 2013.
California’s cap-and-trade program will reduce greenhouse gas emissions from the state’s largest emitters one to three percent a year through 2020. It allows industry to set the price for carbon (measured in metric tons) and provides a market-based auction and trading system for carbon allowances so industries can time their reductions to fit their business plans in the most cost-effective way.
It is one of a suite of programs to address greenhouse gas emissions at all levels of the state’s economy.
The cap-and-trade program is overseen by the Air Resources Board, and has been widely hailed as a program that can provide a model for the world.
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