Well-Designed Cap-and-Trade Program with Robust Cost Containment.
An economy-wide cap-and-trade system will be the least costly and least disruptive approach to meeting the state’s ambitious emissions reduction goal, the California Chamber of Commerce told legislators this week.
Last year the Legislature set the goal for 2030 of reducing greenhouse gas (GHG) emissions in California by 40% below 1990 levels. This amounts to about a 50% per capita reduction in carbon emissions from today’s levels.
In a letter to the California Legislature, Policy Advocate Amy Mmagu points out that this year the Legislature must take the next step by providing the tools to reach the GHG emissions reduction goal.
“Common sense dictates that we start with the approach least costly to businesses and consumers,” she writes. The least costly and least disruptive approach, she explains, is adopting a robust, economy-wide cap-and-trade system.
“We look forward to working with the Legislature to achieve the GHG emission reduction goals in the least costly and most equitable way,” Mmagu concludes. “California’s economy, our residents and consumers deserve our best efforts to keep costs down while meeting this ambitious goal.”
California has world-leading clean energy goals, and its industries are already among the most energy-efficient anywhere. Although the state has made great strides in reducing GHG emissions, many of those reductions were related to the renewable electricity mandate, existing energy efficiency programs, or the result of a long and painful recession.