Many had hoped that the start of quarterly auctions under
California's new cap-and-trade program would usher in an era of
rapid growth for the cleantech sector.
But a pair of lawsuits filed by business groups challenging the
program's validity has cast a cloud of uncertainty over the
program, says Morrison & Foerster partner
William Sloan. The first two auctions—held in
November and February—were important milestones for
cleantech, Sloan says, because now there is a clear market price on
carbon emissions. That gives entrepreneurs a more direct way
to place a monetary value on their innovations for potential
customers and investors.
A court decision in favor of the program could provide a real
cleantech boost. Also on the sector's wish list: an
expansion by state regulators of the types of carbon-reducing
projects–also known as offset projects–that carbon
emitters can invest in to help fulfill their compliance
obligations.
