Schwarzenegger Calls On Market to Reduce Greenhouse Gases

In a move that has irked many of his fellow Republicans, not to mention business leaders, California Governor Arnold Schwarzenegger announced last week that he is supporting a plan for his state to put market-based incentives in place to reduce the greenhouse gas emissions blamed for exacerbating global warming. The intent of the plan is to reduce overall emissions of greenhouse gases within California by 80 percent within a half century by allowing those companies producing more than their fair share of carbon dioxide to purchase pollution credits from other entities that have lowered emissions accordingly. The governor’s climate action team proposed such a system, which Schwarzenegger endorses, at a summit held in San Francisco last week.

Meanwhile, the president of the California Chamber of Commerce, Allan Zaremberg, says the business leaders he represents are “concerned about any cap program that encourages arbitrary reductions in emissions and encourages companies to migrate operations to other parts of the world where there are no carbon dioxide controls.” And while federal officials oppose using a cap-and-trade system to reduce greenhouse gas emissions, they may have little choice but to go along with California—the fourth largest economy in the world on its own—if Schwarzenegger gets his way on the issue.