212474 Resource 107524 205428 205428 1220909939043 1220909974357 Controlled California Carbon Range of $15-$60 per ton, Analysts Predict

Positioned for Global Leadership with a Flexible Cap-and-Trade System

Everyone is looking to California for the future of the Green House Gas Issue, Cap-and-Trade System included. A new report from Deutsche Bank AG indicates carbon credits in California should hover in the $15-$60 per ton range between 2012 and 2020.  <o:p>Deutsche Bank analysts studied the prospects for a California carbon market under the <a href="http://www.arb.ca.gov/cc/cc.htm">state's global warming law, A.B. 32</a>, and predicted relative success if emitters are allowed to meet 10 percent of their obligation with offsets. Prices should stay stable as well.</o:p> <o:p>The goal for California? Cutting greenhouse gases (GHGs) to 1990 levels by 2020. They would need to go with a cap-and-trade design for a sizable percentage of the cuts.</o:p> <o:p>California regulators at the state Air Resources Board released a plan that proposes mixing:</o:p> <ul type="disc" style="margin-top: 0in;"><li class="MsoNormal">Cap-and-trade market</li><li class="MsoNormal">Direct regulation for some sectors</li><li class="MsoNormal">More aggressive renewable electricity standard</li></ul> <o:p>For their part, analysts at Deutsche Bank appeared to express support for the California plan in the report released last week. California's GHG emissions are on track to reach 596 million tons of carbon dioxide equivalents by 2020, but A.B. 32 decrees a cut to 427 million tons -- a goal Deutsche Bank lauded as in line with Europe's similar targets.</o:p> <o:p>"This target implies 2020 per-capita GHG emissions of 9.9 tons in California, very similar to the E.U.'s implied per-capita target by this date of 9.3 tons," the report says.</o:p> <o:p>The scoping plan, in turn, implies a range of $15-$60 per ton for carbon credits, but only if offsets are capped at 10 percent, the report says. If the limit on offsets is tighter, the analysts wrote, this will drive carbon prices higher (and wider) than assumed in their report.</o:p> <o:p>Companies that will be affected by this new system should start making plans now – finding out what their costs will be, implementing EHS software, etc. it could be expensive for some of the worst polluters out there.</o:p> <o:p> </o:p> <o:p> </o:p> <o:p> </o:p> <o:p> </o:p> 10 application/xml false California AB 32 cap and trade carbon credits cost of carbon EHS software ghg emissions global warming greenhouse gas Mozilla/5.0 (Windows; U; Windows NT 5.1; en-US; rv:1.8.1.16) Gecko/20080702 Firefox/2.0.0.16 127.0.0.1 127.0.0.1 jwuebben 74.202.198.130 false true false false true 205814 false false true false false false true 107524 blog blogsite/Enviance/web