Despite President Trump withdrawing from the Paris Agreement in June, Bob Ward highlights that an extension on California’s cap-and-trade programme represents a bipartisan demonstration of climate leadership and cause for optimis

Ward, Bob

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The	extension	and	successes	of	California’s	cap-and-trade	programme	suggests	the	future	of	USclimate	policy	may	not	be	so	bleakDespite	President	Trump	withdrawing	from	the	Paris	Agreement	in	June,	Bob	Ward	highlights	thatan	extension	on	California’s	cap-and-trade	programme	represents	a	bipartisan	demonstration	ofclimate	leadership	and	cause	for	optimism	for	future	US	climate	policy.California’s	Governor	and	its	lawmakers	deserve	praise	for	providing	some	rare	good	news	from	theUnited	States	about	the	fight	against	climate	change.On	17	July,	the	State’s	Senate	and	Assembly	both	voted	through	an	extension	to	the	California’s	cap-and-tradeprogramme,	which	limits	greenhouse	gases	from	the	power	sector	and	industry	by	auctioning	permits	foremissions.	It	was	a	significant	victory	for	Governor	Jerry	Brown,	who	has	championed	strong	action	to	curb	globalwarming.	In	a	stirring	speech	to	lawmakers	about	the	legislation,	he	declared:	“This	is	the	most	important	vote	ofyour	life”.One	of	the	most	remarkable	features	of	the	vote	was	that	both	Republicans	and	Democrats	supported	the	newbill,	reaching	the	two-thirds	supermajority	that	the	Governor	needed	to	protect	it	against	future	attacks.	Thisbipartisan	demonstration	of	climate	leadership	in	California	stands	in	stark	contrast	to	the	abysmal	antics	inWashington	DC	by	climate	change	deniers	in	the	Trump	administration	and	Congress.California’s	cap-and-trade	programme	started	operating	in	early	2012,	but	the	original	legislation	was	due	toexpire	in	2020.	However,	the	cap-and-trade	legislation,	Bill	AB398,	has	now	lengthened	its	duration	until	at	least2030.	In	2016	the	state’s	legislature	voted	to	set	a	target	of	reducing	emissions	by	40	per	cent	by	2030	comparedwith	1990.	Maintaining	the	cap-and-trade	programme	is	regarded	as	crucial	to	reaching	that	goal.Cap-and-trade	has	significantly	helped	California	to	reduce	its	annual	emissions.	In	2015,	their	emissions	werejust	2.2	per	cent	higher	than	in	1990.	The	Golden	State	is	likely	to	exceed	its	initial	goal	of	shrinking	its	output	ofgreenhouse	gases	to	1990	levels	by	2020	and	has	continued	to	prosper	while	reducing	its	emissions.The	cap-and-trade	scheme	has	enjoyed	strong	support	thanks	to	the	auction	of	allowances	to	companies.	Thishas	raised	more	than	$4	billion	since	2013,	most	of	which	is	being	invested	in	further	efforts	to	cut	emissionsthrough	the	Greenhouse	Gas	Reduction	Fund.	It	is	widely	regarded	as	a	success	because	it	has	incorporatedlessons	learned	from	older	schemes,	such	as	the	European	Union	Emissions	Trading	System.	Importantly,California’s	carbon	market	has	a	floor	as	well	as	a	ceiling	to	prevent	prices	from	falling	too	low.	Allowances	weresold	for	about	$14	per	tonne	of	carbon	dioxide	in	the	most	recent	auction	in	May.	But	experts	have	warned	thatthe	price	will	have	to	rise	if	California’s	emissions	are	to	be	cut	in	line	with	international	targets.The	High-Level	Commission	on	Carbon	Prices	concluded	in	its	final	report	in	May	that	the	price	levels	that	wouldbe	consistent	with	achieving	the	goals	of	the	Paris	Agreement	are	$40-80	per	tonne	by	2020	and	$50-100	pertonne	by	2030.	California	has	also	set	an	example	by	linking	its	cap-and-trade	scheme	with	a	similar	programmein	Quebec.	Other	US	states	and	Canadian	provinces	have	expressed	an	interest	in	joining	as	well.The	passage	of	the	new	legislation	adds	to	Governor	Brown’s	significant	reputation	as	an	international	leader	onclimate	change,	who	filled	the	vacuum	of	climate	policy	leadership	after	Trump	announced	in	a	confused	andrambling	speech	in	June	that	he	did	not	want	to	honour	the	commitment	made	by	the	United	States	Governmentto	implement	the	Paris	Agreement.	Governor	Brown	announced	earlier	this	month	that	he	will	host	a	globalsummit	on	climate	change	in	San	Francisco	next	year,	just	before	he	leaves	office.	In	June,	he	was	namedas	Special	Advisor	for	States	and	Regions	by	Fijian	Prime	Minister	Frank	Bainimarama	ahead	of	the	next	UnitedNations	climate	change	summit,	to	be	held	in	Bonn,	Germany,	in	November.USApp – American Politics and Policy Blog: The extension and successes of California’s cap-and-trade programme suggests the future of US climatepolicy may not be so bleakPage 1 of 2		Date originally posted: 2017-07-28Permalink: http://blogs.lse.ac.uk/usappblog/2017/07/28/the-extension-and-successes-of-californias-cap-and-trade-programme-suggests-the-future-of-us-climate-policy-may-not-be-so-bleak/Blog homepage: http://blogs.lse.ac.uk/usappblog/Governor	Brown	has	also	jointly	launched	America’s	Pledge	on	climate	change,	with	former	New	York	City	MayorMichael	Bloomberg.	This	is	a	new	initiative	to	compile	and	quantify	the	actions	of	states,	cities	and	businesses	inthe	United	States	to	reduce	their	greenhouse	gas	emissions	in	line	with	the	goals	of	the	Paris	Agreement.There	are	signs	that	others	are	also	rising	to	the	challenge	of	making	up	for	President	Trump’s	failure	ofleadership.	California	is	one	of	nine	states,	along	with	hundreds	of	American	mayors	and	business	leaders,	whichhave	signed	an	open	letter	of	support	for	the	Paris	Agreement.	The	state’s	success	last	week	is	unlikely	to	be	thelast	of	the	good	news	that	we	will	hear	from	the	United	States	on	climate	change,	despite	President	Trump’sfeebleness	on	this	issue.“Wind	Energy”	by	Tony	Webster	is	licensed	under	CC	BY	2.0Please	read	our	comments	policy	before	commenting.											Note:		This	article	gives	the	views	of	the	author,	and	not	the	position	of	USAPP	–	American	Politics	and	Policy,nor	the	London	School	of	Economics.Shortened	URL	for	this	post:	http://bit.ly/2vPpw0b		_________________________________About	the	authorBob	Ward	–	Grantham	Research	Institute	on	Climate	ChangeBob	Ward	is	policy	and	communications	director	at	the	Grantham	Research	Institute	on	ClimateChange	and	the	Environment	at	the	London	School	of	Economics	and	Political	Science.USApp – American Politics and Policy Blog: The extension and successes of California’s cap-and-trade programme suggests the future of US climatepolicy may not be so bleakPage 2 of 2		Date originally posted: 2017-07-28Permalink: http://blogs.lse.ac.uk/usappblog/2017/07/28/the-extension-and-successes-of-californias-cap-and-trade-programme-suggests-the-future-of-us-climate-policy-may-not-be-so-bleak/Blog homepage: http://blogs.lse.ac.uk/usappblog/

The extension and successes of California's cap-and-trade programme suggests the future of US climate policy may not be so bleak.

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