The governator takes aim at global warming
By Marc Gunther, Fortune senior writer

(Fortune Magazine) -- The Governator Takes Aim at Global Warming

Doing business in California will be changed radically by Governor Schwarzenegger's plan to cap emissions of greenhouse gases. New legislation requires the state to cut emissions by about 25% by 2020.

1. How will the state make that happen? By mandating cleaner cars and power plants, green buildings, efficient appliances, renewable energy, and alternative fuels. So-called smart-growth plans will put new development near public transport. Planting trees, which soak up CO2, will help too.

2. Sounds good. Everybody likes trees. Yes, but the law will raise energy costs and gas prices and drive companies elsewhere, according to the state Chamber of Commerce. California has decided "to become a Third World economy," says Myron Ebell of the free-market Competitive Enterprise Institute.

3. So business opposed the law? Not at all. Silicon Valley loves it. VCs like John Doerr say it will usher in a clean-technology boom. At business's urging, the law provides for a market-based "cap and trade" system, which allows companies that can't meet the aggressive new limits to buy credits from more efficient or innovative firms. It "strikes the right balance," says Peter Darbee, CEO of PG&E Corp., one of the state's big utilities.

4. Will Washington act next? Probably. With Al Gore, Senator John McCain, Republican governors, evangelical Christians, and big companies like GE and Wal-Mart backing regulation of greenhouse gases, opponents are on the defensive.  Top of page

YOUR E-MAIL ALERTS
Follow the news that matters to you. Create your own alert to be notified on topics you're interested in.

Or, visit Popular Alerts for suggestions.
Manage alerts | What is this?
Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer LIBOR Warning: Neither BBA Enterprises Limited, nor the BBA LIBOR Contributor Banks, nor Reuters, can be held liable for any irregularity or inaccuracy of BBA LIBOR. Disclaimer. Morningstar: © 2014 Morningstar, Inc. All Rights Reserved. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2014 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2014. All rights reserved. Most stock quote data provided by BATS.
Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer LIBOR Warning: Neither BBA Enterprises Limited, nor the BBA LIBOR Contributor Banks, nor Reuters, can be held liable for any irregularity or inaccuracy of BBA LIBOR. Disclaimer. Morningstar: © 2014 Morningstar, Inc. All Rights Reserved. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2014 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2014. All rights reserved. Most stock quote data provided by BATS.