California carbon market expected to go past 2020
The California Air Resources Board announced that the California carbon market must go beyond its current 2020 timeframe in order to reach its long term emission reduction target.
The California carbon market is currently designed to run through 2020 in three compliance periods.
The first runs from 2013-2014 and covers large stationary sources like power plants and fuel refineries that emit over 25,000 tonnes of carbon dioxide (CO2) annually.
In 2015 the California carbon market will expand to include fuel distributors, greatly increasing the size of market.
By 2020 the California carbon market will regulate about 360 businesses, representing roughly 600 facilities.
The state aims to reduce emissions to 1990 levels by 2020, a decrease from 596 to 427 million tonnes of CO2.
However the state’s long-term goal of reducing emissions to 80% below 1990 levels by 2050 will require an extension to the California carbon market.