California lawmakers voted to extend the state’s cap-and-trade program another 10 years on Monday night. The bill includes language that would gradually tighten restrictions on businesses, reducing the amount of greenhouse gases they’re allowed to put in the atmosphere by 40 percent by 2030.
California’s cap-and-trade market puts a limit on the amount of greenhouse gas (GHG) emissions that companies are allowed to put into the atmosphere, and it allows companies to buy and sell GHG credits. That means that a company whose business requires additional GHG emissions over the limit would have to buy credits in an auction.
