Following the introduction of legislation intended to cut California’s industry-produced GHG emissions by at least 25% by 2020, the state has enlisted the help of BP in developing workable, market-based strategies to assist the implementation of the climate change legislation.
The Global Warming Solutions Act of 2006 was approved by California's legislature last week, making it the first US state to impose mandatory emissions reductions on industry.
The legislation includes provisions for an emissions trading scheme to allow the buying, selling and trading of emission credits between companies in an effort to drive emissions down.
BP Group chief executive John Browne said after speaking with Schwarzenegger he believed, through the governor’s leadership, a fully functioning market would become an integral part of the system to reduce GHG emissions.
“Having an emissions market will help California achieve the lowest cost solutions and spur innovation of new technologies supporting lower greenhouse gas emissions,” Browne said.
Emissions cap and trading schemes have long been supported by BP, already an active participant in the European Union emissions reduction market.
BP America president Bob Malone said over the years BP had worked with successive California administrations and legislatures to develop sound public policy to reduce greenhouse gases.
“Our engagement on this issue will continue as new climate change regulations are developed. We want this effort to be successful because what happens in California matters to the nation and to the world,” he said.