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California debuts landmark cap-and-trade system

FILE - In this Tuesday, Aug. 21, 2007 file photo, the sun sets behind an oil refinery on Rosedale Highway, in Bakersfield, Calif. On Wednesday, Nov. 14, 2012, California�s largest greenhouse gas emitters will for the first time begin buying permits in a landmark �cap-and-trade� system meant to control emissions of heat-trapping gases and spur investment in clean technologies. The program is a key part of California�s 2006 climate-change law, AB32, a suite of regulations that dictate standards for cleaner-burning fuels, more efficient automobiles and increased use of renewable energy. (Casey Christie / The Bakersfield Californian)
Jason Dearen Associated Press

SAN FRANCISCO (AP) — California has begun auctioning permits for greenhouse gas emissions, launching what is expected to be the world’s second-largest carbon market.

The California Air Resources Board says it began selling pollution “allowances” for the first time Wednesday as planned, in a closed, online auction.

The board says the results of the auction — what price was paid for a ton of carbon, and how many companies participated — will be released Nov. 19.

The cap-and-trade plan is a central piece of the state’s 2006 global warming law, AB32, a suite of regulations meant to dramatically reduce the state’s emissions of heat-trapping gases.

The auction occurred despite a last-minute lawsuit from the California Chamber of Commerce, which has argued the program should be invalidated as an illegal tax.