The US state of California has adopted a new legislation package extending the existing CO2 cap-and-trade scheme, which was due to expire in 2020, through 2030. It also attempts to strengthen it by requiring large industrial sites to upgrade old equipment with more efficient and clean technologies by 2023. Under the new package, the number of carbon allowances granted for free will be cut by 40% by 2030 and carbon offsets will have to be exclusively sourced from California.
The California emission trading scheme (ETS) was implemented in 2006 and the first permits were auctioned in 2012. It is linked to the carbon market of Quebec (Canada, since 2014) and will link to the new cap-and-trade programme of Ontario (Canada) in 2018. It is part of California's measures to cut its greenhouse gas (GHG) emissions by 30% between 1990 and 2020 and currently caps 85% of the state's total emissions.
California has committed to continue CO2-cutting policies, including ambitious renewable policies, in spite of the White House climate policy.
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