Overview

In the aftermath of the US mid-term elections, California has re-emerged as the most likely jurisdiction to set the precedent for an economy-wide cap-and-trade program that includes international offsets.

The California Air Resources Board (has recently released its Proposed Regulation to implement the California Cap-and-Trade Program for greenhouse gases, days before Californians voted down a ballot initiative, which would have suspended the law that authorises the cap-and-trade regulations.

The failure of Proposition 23 by a wide margin signals that California is prepared to move forward to implement climate policy on the state level. Baker & McKenzie explains the consequences.