November 13, 2012
California’s largest greenhouse gas emitters will begin buying permits in a landmark “cap-and-trade” system designed to control emissions of heat-trapping gases and to spur investment in clean technologies.
The program is the most wide-ranging of its kind in the nation and a key part of California’s 2006 climate-change law that dictates standards for cleaner-burning fuels, more efficient automobiles, and increased use of renewable energy.
Under the plan, the California Air Resources Board will auction off pollution permits called “allowances” on Wednesday to more than 350 businesses, including electric companies, food processors and refineries.
In essence, the auction will put a price on carbon emissions.