California has paved the way for the American cap-and-trade market, why not do the same for green banks? A recent article published by Bloomberg suggests the possibility of using revenues from California’s cap-and-trade program to set up a state green bank. The program, implemented just this year, has already sold 23.1 million allowances in November, 12.9 million in February, and 10 million “advance” allowances to cover future emissions. Over time, the cost of allowances will raise as the emissions cap falls.
Lieutenant Governor Gavin Newson has proposed that the revenues from the program go toward other mechanisms for reducing GHG emissions, namely a state-run Green Infrastructure Bank. The purpose of the bank will be to make low-interest loans to public and private organizations investing in environmentally friendly practices.
Keep reducing emissions, California!