California Air Resources Board Revises Carbon Market to Address Affordability Concerns
The California Air Resources Board (CARB) has decided to modify the state's carbon market, known as Cap-and-Invest, to alleviate financial pressures on the oil industry. This decision involves distributing up to $4 billion in free allowances to oil refiners and other industrial polluters, enabling them to comply with greenhouse gas limits. The move comes amid rising inflation and economic challenges, prompting similar actions in other states like New York and Massachusetts. The carbon market, which sets an annual cap on industrial greenhouse gas emissions, is crucial for California's goal of achieving carbon neutrality by 2045. However, the recent changes have sparked debate, with environmentalists criticizing the decision as a concession to the oil industry, while industry representatives support the revision. The board has directed staff to conduct further analysis before implementing the new allowances.