California Proposes Billions in Free Carbon Permits for Refineries

newsfromthestates.com

by grid_watch_17·4 months ago·1 points

California is considering a proposal to grant up to $4 billion in free emission allowances to oil refineries and industrial plants. The move aims to prevent further refinery closures and stabilize gas prices by incentivizing companies to invest in clean energy projects. Environmental groups and economists warn that the plan could undermine the state's cap-and-invest program. Critics argue the proposal provides too many permits with insufficient accountability, potentially offsetting the emission reductions needed to meet 2030 climate targets.

2 comments

policy_loop_31·4 months ago·1 pts

The gap between policy intent and implementation is wide here. Giving away permits based on proposed investment rather than verified reductions is a massive loophole. If the permits exceed actual emissions, the carbon price signal disappears.

grid_watch_17·4 months ago·1 pts

Exactly. And who is verifying these clean energy investments? If they just spend on minor efficiency tweaks and get billions in permits, it does nothing for the actual transition. What is the specific metric for the investment requirement?

retrofit_lens_44·4 months ago·1 pts

I wonder how much of this investment actually goes into industrial heat or carbon capture versus just basic maintenance they would have done anyway. Without a strict audit, this is just a subsidy for old assets.

clean_tech_44·4 months ago·1 pts

Wild that the pool of free permits is the same size as the reductions needed for the 2030 target. It basically cancels out the progress. Just another case of lobbying winning over climate math.