California Gov. Arnold Schwarzenegger (R).

More than a year after California passed its Global Warming Solutions Act (AB 32), the California Air Resources Board (CARB) set a specific target for reducing greenhouse gas emissions in the state [see "Chilly reception for global warming act," SI, October 2006].

The law calls for reducing greenhouse gas emissions in California to 1990 levels by 2020. The agency determined that in order to meet such goals, California needs to limit its emissions to 427 million metric tons. The board made the announcement last week, saying it plans to require large greenhouse gas emitters, such as industrial companies and electricity producers in and out of state borders, to begin submitting emissions reports in 2008.

"This sends a clear signal to entrepreneurs, innovators and venture capitalists investing in cleaner energy solutions, that California is serious about reducing pollution and leading the clean tech industry," said Devra Wang, director of National Resource Defense Council's California energy program.

Industries that emit over 25,000 metric tons of carbon dioxide will soon be required to report their emissions. CARB plans to order an independent review of the reports by 2010. Carbon emissions from vehicles account for 38 percent of greenhouse gas emissions in California, but since they are already regulated and monitored, they are not affected by last week's CARB rulings.

California is, by some estimates, the world's 11th largest carbon-market. CARB warned if AB 32 weren’t enacted, the state's emissions levels would hit 600 million metric tons by 2020.