California Sets Compelling Targets?

California's global warming law and the associated carbon-related opportunities and risks are substantive. This law promises to affect nearly every single business, government entity, and household in California...and other states are following in California's footsteps. The magnitude of the problem, the opportunity, and the risks are huge. Consider that: By 2020 California has committed to reduce CO2 emissions by ~177 million tons while the state's population will have grown by ~42% Experts predict that a carbon tax of between $150 and $200 per ton is needed to forestall disastrous climate change by 2050. Domestic CO2 reductions are transacting for between $4 and $12/ton. Some early actors will do very well....others will end up investing in projects that produce little in the way of tradable CO2e. While Governor Schwarzenegger has vowed to use the power of the market to address California's global warming problem, a powerful democrat has promised that he "..won't let Wall Street traders control our fight against global warming."

Source: CarbonMonitor Vol 12, Issue 8, Sept 2007