California companies’ pollution credits risk climate aims

SACRAMENTO, Calif. — Oil refineries, utilities and other companies that must pay to emit greenhouse gases in California have saved up so many credits allowing them to pollute that it may jeopardize the state’s ability to reach its ambitious climate goals, according to a report by a panel that advises state officials. California runs one of the world’s largest carbon markets, known as “cap-and-trade,” which requires companies to buy, trade or receive pollution “allowances” equivalent to how much they plan to emit. But companies that participate have saved up so many allowances — 321 million — that it could hurt the program’s ability to force significant emissions reductions, according to a report finalized last week by the Independent Emissions Market Advisory Committee, a group of five experts appointed by lawmakers and the governor. The report comes as the California Air Resources Board is preparing an assessment of the state’s progress toward its climate goals, known as a “scoping plan.” It’s the first such plan in five years, and the committee urged the board to thoroughly look into the role cap and trade should play. The air board’s last scoping plan found cap and trade would be responsible for 38% of the state’s emissions reductions — essentially anything that can’t be achieved by those other programs.