California ponders $1 billion carbon revenue
California is already considering its options on how to spend revenue generated from its carbon market.
According to the state’s budget report, carbon allowance auctions will contribute over $1 billion to the state over the next year. These funds will be crucial to shrink California’s deficit, currently over $9 billion.
Other options have been presented for how to appropriate the additional revenue. Residents may receive a check to offset higher fuel costs. Since the carbon market requires major energy utilities to meet stricter emissions standards, a small rise in fuel costs is expected.
There was also the possibility that some of the revenue could be put towards the construction of a large rail network that would connect the central and southern portions of California.