Cap-and-trade is coming to California. The market-based system intended to cut greenhouse gas emissions is the key part of the Golden State's effort, set into law four years ago, to cut its emissions to 1990 levels by 2020. Yesterday the California Air Resources Board finally approved the complex set of rules, which will go into effect in 2012.
Power plants, refineries and other industrial facilities that emit carbon dioxide and can't cut their emissions by the required amount will be able to obtain pollution allowances from the state or buy them from other emitters with excess allowances. [Wall Street Journal]
