For the third time in four quarters, California’s most prominent program to fight climate change brought in a fraction of the revenue state officials projected.
Under the cap-and-trade program, companies must purchase pollution credits that allow their emissions. But results released Wednesday show the latest quarterly auction of those credits generated about $8 million—far less than the half-billion dollars the state typically expects.
Lawmakers use cap-and-trade revenue to fund clean energy programs and high-speed rail.
The weak results may be a symptom of uncertainty about the program’s future. Businesses may be holding off on purchasing credits until it’s clear the program will continue past a 2020 expiration date, as well as a legal challenge.
At the same time, companies still need to buy credits if they’re emitting greenhouse gases. A lack of interest could go along with reductions in emissions that have outpaced expectations.
Auction Results (in millions):
| February 2015 |
630 |
| May 2015 |
627 |
| August 2015 |
645 |
| November 2015 |
657 |
| February 2016 |
517 |
| May 2016 |
10 |
| August 2016 |
8 |
| November 2016 |
365 |
| February 2017 |
8 |
Source: Legislative Analyst's Office
Follow us for more stories like this
CapRadio provides a trusted source of news because of you. As a nonprofit organization, donations from people like you sustain the journalism that allows us to discover stories that are important to our audience. If you believe in what we do and support our mission, please donate today.
Donate Today
