California agrees greenhouse gas cap

Arnold Schwarzenegger, the Republican governor of California, today made a clear break with the White House when he announced an agreement for a state-wide cap on greenhouse gas emissions.
Mr Schwarzenegger said he hoped the legislation - approved by the Californian Senate last night - would become "an example for other states and nations to follow" in the fight against climate change.
Californian senators voted 23-14 in favour of the plan after weeks of tough negotiations. It is now expected to be backed by California's Democrat-controlled Assembly.


The move is in sharp contrast to George Bush's inaction on climate change, notably his refusal to sign up to binding targets in the Kyoto protocol.
In the past, Mr Schwarzenegger has accused the US president of failing to demonstrate leadership on climate change.
Last month, Tony Blair broke with his usual loyalty to the Bush administration by signing a statement of intent with California that could open the way for a new transatlantic carbon trading agreement aimed at cutting emissions.
Today, Fabian Nunez, the Democrat speaker in the Californian Assembly, explained his backing for Mr Schwarzenegger's plan.
"My main objective was getting a bill that the environmental community can champion around the country and say: 'California did this, and you should be, too'," he said. "And we did that."
The bill requires the state's major industries, such as utility plants, oil and gas refineries and cement kilns, to reduce their emissions of carbon dioxide and other greenhouse gases by an estimated 25% by 2020.
A market programme allowing businesses to buy, sell and trade emission credits with other companies is among the key proposals designed to drive the reductions.
"Today, it feels as if the whole world is watching - and I hope they are," Ann Notthoff, of the Natural Resources Defence Council, one of the environmental groups involved in the negotiations, said.
The agreement was announced simultaneously by Mr Schwarzenegger's office and Democratic leaders in both the Senate and the Assembly. It gives him a key environmental victory as he seeks re-election this autumn.
The bill states that the California Air Resources Board, an 11-member panel appointed by the governor, must identify "market-based compliance mechanisms" that could be used as part of its plan to achieve the emissions cap.
The state's move has been praised by environmentalists as a step toward fighting global climate change. However, it has been criticised by some business leaders, who say it will increase costs and force them to scale back operations in California.
Republicans have also condemned the bill, saying it would have little effect but would make California an expensive place to do business. "This bill is the road to economic ruin," Senator Dennis Hollingsworth said.
California - the most populous state in the US - is the world's 12th largest emitter of greenhouse gases, and could suffer dire consequences if global temperatures increase by only a few degrees.
In the absence of federal action, much of the effort to combat climate change has been taking place in individual states. More than 100 climate-related bills have been held up in Congress, including one demanding a national cap on emissions.
California has led the country in reducing greenhouse gas emissions through renewable energy policies and the passing of a law reducing exhaust emissions from vehicles in 2004.
Ten other states are poised to enact the car law, while more than 20 now require utilities to eventually generate some power from renewable sources.
The California bill includes a so-called "safety valve" sought by Mr Schwarzenegger that would allow him to delay the emission cap target if the state was hit by a natural disaster or terrorist attack.Interactive guidesGlobal warmingSpecial reportsClimate changeUnited States