What California's big vote on climate change policies means for you
It’s the centerpiece of California’s battle against global warming, and it’s so complex that it can make even hardened policy wonks shudder. Yes, we’re talking about the state’s cap-and-trade program.
The only system of its kind in the country, it’s designed to reduce greenhouse gas emissions from facilities such as oil refineries, food processors and power plants. The program faced expiration by 2020, but lawmakers voted Monday to extend ituntil 2030.
California could end up relying on cap and trade for nearly a third of its emission-reduction goal. So how does it work? And what does the new legislation change about the program?
Let’s start with a broad overview. At a basic level, cap and trade is supposed to put financial pressure on companies to reduce their emissions by requiring them to obtain permits, or allowances, for each metric ton of greenhouse gas they release.