HIP HIP HOORAY......California is now using carbon taxes and is hoped to be a model for the rest of the bankrupt states of America..

[link to www.cnbc.com]


California is set to unveil a new weapon in its fight against global climate change on Wednesday when it holds its first sale of carbon emissions permits - a landmark experiment that it hopes will serve as a model for other U.S. states and the federal government.

The state's carbon auction is a key step in the initiation of its "cap-and-trade" program, a policy where the state sets a limit, or cap, on the amount of heat-trapping gases released by manufacturers, oil refineries, electric utilities and other large emitting businesses.

Those companies can then either reduce their emissions or purchase carbon permits, also known as "allowances," on the open market from companies that have extras - the "trade" part of cap and trade. The number of allowances in the system will decline over time.

Environmentalists have long advocated cap-and-trade as a market-based means of limiting greenhouse gas emissions. Thirty European countries have been using it since 2005, and markets are operating or in development in Australia, China, Japan, Kazakhstan, New Zealand, Quebec and South Korea.

With Superstorm Sandy drawing attention to climate change and a strong Democratic showing in last week's election, carbon emission limits could again be on the national political agenda in the United States. But past efforts to implement cap-and-trade nationally have faltered in the face of opposition from congressional Republicans and others who say it will increase energy costs.

The California Chamber of Commerce on Tuesday filed a lawsuit to stop the California auction of emissions permits, contending that the state had exceeded its authority in making the program a revenue-generator. Sale of carbon allowances is expected to generate at least $1 billion a year.

The cap-and-trade program, which initially covers 350 businesses, is a key component of AB 32, California's landmark 2006 law, which called for the state to cut its greenhouse gas emissions back to 1990 levels by 2020. That's a reduction of about 15 percent.

"The cap-and-trade auction is a huge milestone for California because it kick-starts a program that is the strongest and boldest move yet in the U.S. to protect public health and the environment from climate change," said Fred Krupp, president of the Environmental Defense Fund.

INFLUENCE

California is responsible for about 3 percent of global greenhouse gas emissions, so influencing others to follow suit and eventually link to the California market will be critical to the program's success.

"Our overall impact is small,"


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