AB 32 Legislation Moves Forward
Codenamed AB 32, the Global Warming Solutions Act must operate within a range of strictly defined principles and objectives to be effective. Overall, its goal is considered to be justified from a global warming perspective, but it’s impact on the California economy should not be under estimated. AB 32 represents a significant challenge to the state’s growth.
If California’s administration and those charged with implementing the regulations cannot placate the worries of existing organizations within the state, any new initiatives could prove to be moot. It’s very important that the state provide education to ensure that everyone understands what AB 32 legislation is all about and especially to explain its benchmark targets.
Overall, companies within California must be competitive in their marketplaces, while the controversial AB 32 legislation is enacted. Within the regulations, it is said that emission reductions must be achievable while also being technologically feasible and cost-effective. This is a great goal, but may be difficult to implement and jobs and consumer interests must be safeguarded at all times.
Many view changes as threats, but they must always be viewed as opportunities by the forward thinking business man. While AB 32 legislation introduces a number of restrictions, market-based incentives and caps, the ultimate goal is to improve energy efficiency. A company that goes further than the letter of the law and becomes even more energy-efficient will by definition reduce its carbon emissions and become more competitive in its marketplace anyway.
Nationwide, a cap and trade mechanism is being considered and it will be interesting to see how California’s Global Warming Solution Act mixes in with that if it passes. The AB 32 legislation came into being in 2006 and can be considered ahead of its game, while the US Senate is only now considering nationwide legislation.
The United Kingdom already has a countrywide cap and trade program in place. Many proponents believe that this approach is the only way to realistically force down energy use and carbon emissions. Could it be that a globally linked network of similar schemes will ultimately come into play, to satisfy the worries of the environmentalists?
AB 32 legislation determines that emissions must be reduced, initially by 25% through the year 2020. These figures will be compared to a benchmark set in 1990 and to look further ahead, a reduction of 80% is thought to be achievable by the year 2050.
All business leaders must understand the implications of AB 32, especially if they operate in the state of California. Leaders elsewhere should pay attention to how a California-based company addresses the laws and conforms.
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