California carbon auction raises $725 million
SACRAMENTO, Calif. (AP) — California raised more than $725 million from selling permits to release greenhouse gases in the latest quarterly auction.
Auction results released Wednesday show all available permits were sold for the third straight auction since lawmakers extended California’s cap-and-trade program through 2030. The program requires polluters to obtain permits for each ton of carbon they release.
Permits sold for $14.61 for current emission and $14.53 for the future.
Sixty percent of the revenue is earmarked for specific projects including a high-speed train between San Francisco and Los Angeles. The remaining 40 percent is divvied up by state lawmakers for programs that address climate change, such as electric-vehicle subsidies.
Cap and trade is a central part of California’s plan to reduce greenhouse gas emissions 40 percent below 1990 levels by 2030.