(June 4, 2007) California Chamber of Commerce President Allan Zaremberg issued a statement highlighting the benefits of using market forces to reduce greenhouse gas emissions cost-effectively in response to draft recommendations released by a state advisory committee.

The 14-member Market Advisory Committee was set up by the California Environmental Protection Agency to develop recommendations for designing a cap-and-trade system of reducing greenhouse gas emissions in response to the limits set by AB 32, California landmark climate change law. It released its draft report of 100-plus pages on June 4.

Zaremberg said: “California has set aggressive goals to reduce greenhouse gas emissions in the coming years. Using the innovation and efficiency of market forces to attack this challenge is essential if we are to meet these environmental goals, minimize the impact on consumers and ensure a strong economy in California. Markets are the most cost-effective way to reduce greenhouse gas emissions throughout the world, delivering the most carbon reductions per dollar spent.

“As Harvard professor Robert Stavins explained in a recent presentation to our business working group dedicated to a fair and effective implementation of AB 32, a cap-and-trade market system can be more environmentally effective and more cost-effective than conventional approaches, cap-and-trade systems have a proven track record of achieving both environmental goals and cost-savings, and they create a common currency of emission credits that make it possible to link systems in different jurisdictions.

“We look forward to analyzing the report and working with the Administration to implement the law in a way that leads to a coordinated global solution - a way that is fair to both environmental protections and ensuring a strong economy so that other states, the federal government and other countries will embrace and adopt our approach. To do otherwise risks not only hurting consumers and damaging our economy but leaving California isolated in what would become a futile attempt to affect this global issue alone.”

View the report.