California governor seeks tougher 2030 GHG goal

California governor Gavin Newsom (D) has asked state lawmakers to consider setting a more aggressive 2030 greenhouse gas (GHG) reduction goal.

The governor has called for increasing the state's 2030 GHG emissions reduction target from 40pc to 55pc below 1990 levels, according to a document obtained by Argus that Newsom's office has circulated with lawmakers.

"Increasing ambition in the near-term supports the unprecedented rate of transformation needed in this decade to build the clean energy systems of tomorrow," Newsom said in the document. "It also accelerates the near-term benefits in air quality in our most impacted communities by phasing down fossil fuel combustion sooner."

Such a proposal, if enacted, could result in tougher state regulations, potentially including lower GHG limits for the state's cap-and-trade-program.

California Carbon Allowances for December 2022 delivery traded as high as $32.31/metric tonne on the Intercontinental Exchange today in response to the news.

The cap-and-trade program covers major sources of California's GHG emissions, including power plants and transportation fuels and mandates a 40pc reduction below 1990 levels by 2030.

Newsom also called for lawmakers to consider four other climate policy proposals: codifying California's 2045 carbon neutrality goal; creating interim targets toward the state's mandate for 100pc clean electricity retail sales by 2045; establishing a setback distance between new oil wells and homes, schools or parks; and requiring the development of a regulatory framework for carbon removal and carbon capture, utilization and sequestration.

Newsom's office did not immediately respond to requests for comment.

Senate president pro tempore Toni Atkins (D) welcomed Newsom's support, noting that the Senate's climate working group will work with Newsom's office "to ensure that California is setting the example for the world."

The legislative proposals come a little over two weeks after Newsom separately asked the California Air Resources Board, the lead agency for the state's climate efforts, to set tougher Low Carbon Fuel Standard targets and take other steps to reduce emissions.

By Tomas Russo