10/16/2006 GAAS:761:06 FOR IMMEDIATE RELEASE Print Version
California, New York Agree to Explore Linking Greenhouse Gas Emission Credit Trading Markets; Gov. Schwarzenegger Tours Carbon Trading Floor
.
 |
 |
In order to more efficiently reduce greenhouse gas emissions, Gov. Arnold Schwarzenegger and New York Gov. George E. Pataki agreed to explore ways to link California's future greenhouse gas emission credit market and the Northeastern and Mid-Atlantic states' Regional Greenhouse Gas Initiative (RGGI) upcoming market.
"I recently signed legislation giving California the most ambitious greenhouse gas reduction goal in the country. But no one state can do it alone. It truly is a global problem where states, regions and nations must work together to find a solution," said Gov. Schwarzenegger. "So I am happy to announce today that as we implement our new law we will form a greenhouse gas trading partnership with RGGI, the multi-state greenhouse gas cooperative spearheaded by Gov. Pataki."
Gov. Schwarzenegger also announced an executive order directing California Secretary for Environmental Protection Linda Adams to coordinate state climate change policy. The executive order, which will formally be signed on Tuesday, also instructs the secretary to work with the California Air Resources Board to seek to develop a framework that allows California to work together with RGGI. Such an arrangement would help build a large, robust carbon trading market that will dramatically reduce emissions.
RGGI (pronounced ReGGIe) is a cooperative effort by Northeast and Mid-Atlantic states to discuss the design of a regional cap-and-trade program initially covering carbon dioxide emissions from power plants in the region. In the future, RGGI may be extended to include other sources of greenhouse gas emissions, and greenhouse gases other than CO2.
Currently, Connecticut, Delaware, Maine, New Hampshire, New Jersey, New York and Vermont are participating in the RGGI effort. Legislation was signed in April 2006 that requires Maryland to become a full participant in the process by June 30, 2007. In addition, the District of Columbia, Massachusetts, Pennsylvania, Rhode Island, the Eastern Canadian Provinces and New Brunswick are observers in the process.
Earlier in the day, Gov. Schwarzenegger toured a greenhouse gas emissions credit trading desk at Credit Suisse with New York Mayor Michael R. Bloomberg.
"This morning I went to a trading floor where they were helping companies buy and sell emissions credits because I wanted to learn about this marketplace and how it will work in California," said Gov. Schwarzenegger, who hosted Mayor Bloomberg several weeks ago to tour a fuel cell manufacturing facility in the Silicon Valley. "But it also struck me that these jobs were all new jobs being created in the clean-tech industry. I have said many times that you do not have to choose between a healthy economy and a healthy environment."
The main market for trading greenhouse gas emission credits globally is the European Union Emissions Trading Scheme. Credit Suisse is one of the only major financial institutions with its greenhouse gas emissions credit trading desk based in the U.S. and provides companies and investors with access to the rapidly growing emissions trading markets.
The Governor also visited NASDAQ to ring the opening bell and celebrate the market's new clean-tech index.
"As Governor of California, I am happy to say that NASDAQ lists more than 600 companies from my state - dynamic companies that are the leaders in entertainment, high-tech, bio-tech and now clean-tech," said Gov. Schwarzenegger just prior to the market's opening. "These clean-tech companies will harness new energy sources that are clean and renewable, slash pollution and help us cut greenhouse gas emissions in the fight against global warming. Once again, NASDAQ is on the leading edge by creating a Clean Energy index to track this emerging industry."
Gov. Schwarzenegger has a record of protecting and enhancing the state's environment.
Last month, the Governor signed AB 32, California's landmark greenhouse gas emissions legislation that established a first-in-the-world comprehensive program of regulatory and market mechanisms to achieve real, quantifiable, cost-effective reductions of greenhouse gases. By doing so, Gov. Schwarzenegger has made California a model for other states and countries to follow in reducing greenhouse gas emissions.
AB 32 requires the California Air Resources Board (CARB) to develop regulations and market mechanisms that will ultimately reduce California's greenhouse gas emissions by 25 percent by 2020. Mandatory caps will begin in 2012 for significant sources and ratchet down to meet the 2020 goals.
In the interim, CARB will begin to measure the greenhouse gas emissions of the industries it determines as significant sources of greenhouse gas emissions. The bill also provides the Governor the ability to invoke a safety valve and suspend the emissions caps for up to one year in the case of an emergency or significant economic harm.
The Governor has also worked to forge similar agreements with other states, regions and nations. Two months ago at the 24th Annual Border Governors Conference, Gov. Schwarzenegger called upon his fellow governors to take up the issue of creating a regional, market-based program to cap greenhouse gas emissions at the next meeting.
In July, the Governor signed a unique agreement with British Prime Minister Tony Blair to become partners and act aggressively to address climate change and promote energy diversity and at June's meeting of the Western Governors Association, Gov. Schwarzenegger presented his Climate Action Team's report on reducing greenhouse gases and called on the Western states to take a regional approach to meeting energy needs while protecting the environment.
Because of California's massive and growing economy, the state is the 12th largest emitter of greenhouse gas in the world despite leading the nation in energy efficiency standards and lead role in protecting its environment.