California is reconsidering it s “cap and trade” approach to energy transition/decarbonization. “Launched in 2013, California’s cap and trade program sets an overall cap on greenhouse gas emissions each year but offers flexibility in how companies achieve it by allowing them to buy and sell pollution credits in auctions. … California’s nonpartisan Legislative Analyst’s Office said that its possible this could become a trend: Future auctions might continue to flatline because of the recession and too many pollution credits floating around the market. … The Legislative Analyst’s Office warns too many credits might interfere with reaching California’s 2030 climate goals. … A think-tank analysis published in January suggested altering the minimum price at which cap-and-trade credits are sold, recommending that the price rise and fall in response to rising and falling emissions. … As California’s leadership haggled over the budget, Wieckowski’s proposal was scrapped. Blumenfeld said in his letter that California needs more time to understand the long-term consequences of the pandemic.”
