AB 32 Legislation

AB 32 Legislation Gathers Momentum

If the Global Warming Solutions Act, code-named AB 32, is to be truly effective, it must operate within a number of carefully defined objectives and principles. While the holistic view may be admirable and attention to global warming certainly justified, such a stringent set of regulations as encompassed by AB 32 could represent significant challenges to California's economy and growth otherwise.

There is a chance that unless California's administration and regulatory bodies assuage the worries of both existing, domesticated organizations and those seeking to do business in the state, new initiatives could stall or be reversed. As always, education is key and as the AB 32 legislation approaches some of its more important benchmark targets, this is more necessary than ever.

If the Global Warming Solutions Act, code-named AB 32, is to be truly effective, it must operate within a number of carefully defined objectives and principles. While the holistic view may be admirable and attention to global warming certainly justified, such a stringent set of regulations as encompassed by AB 32 could represent significant challenges to California's economy and growth otherwise.

Is it possible to implement something as far-reaching as the AB 32 legislation, while still maintaining a neutral environment, to allow California companies to be competitive across the board? The very regulation requires that regulations introduced to reduce emissions be both "cost-effective and "technologically feasible." This is surely easier said than done. It's important to maintain this philosophy however if jobs are going to be safeguarded in the interest of consumers and business.

Many view changes as threats, but they must always be viewed as opportunities by the forward thinking business man. While AB 32 legislation introduces a number of restrictions, market-based incentives and caps, the ultimate goal is to improve energy efficiency. A company that goes further than the letter of the law and becomes even more energy-efficient will by definition reduce its carbon emissions and become more competitive in its marketplace anyway.

AB 32 Legislation Moves Forward

It will be interesting to see how California's Global Warming Solutions Act "gels," should a nationwide cap and trade, market driven legislation be introduced. AB 32 in California was signed into law in 2006 and is thus quite far ahead of the game, while nationwide legislation is only now being considered in the US Senate and will likely take many years to "crank up".

In the United Kingdom, countrywide cap and trade programs are now being introduced. Many believe that this form of market manipulation is the most equitable way of forcing down energy use and carbon emissions and that ultimately, a globally linked network of similar schemes will be necessary to achieve the lofty goals that groups of environmentalist project.

AB 32 Legislation Finds Way to Address Climate Change

As written, AB 32 legislation seeks to reduce carbon emissions to 1990 levels by the year 2020. This represented a 25% reduction when the law was introduced in 2006. Looking further ahead, much more aggressive action is anticipated with a reduction of 80% deemed to be achievable by the year 2050.

Business leaders should ensure that they are as educated as possible in the intricacies of AB 32, most especially if they have operations in the state of California. Competitively minded leaders should pay attention to how innovative organizations are preparing for the impact of the legislation.

About Verisae

Verisae helps measure, manage and reduce equipment and energy costs including the related business and environmental impacts of carbon emissions. The Sustainability Resource Planning (“SRP”) software platform improves operational efficiency, protects brand integrity and helps ensure regulatory compliance for distributed enterprises across many industries. Verisae delivers a broad range of sustainability solutions to dozens of clients globally with thousands of daily users including an extended network of third-party suppliers. Verisae’s integrated sustainability platform actively tracks millions of assets across thousands of sites worldwide.

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