California sees “greenrush” in global warming move

By Mary Milliken

LOS ANGELES (Reuters) – In a land where fortunes were spun
from gold, films and silicon chips, California’s leaders
envisage a “greenrush” with their groundbreaking law to fight
global warming.

California’s legislature approved the Global Warming
Solutions Act of 2006 on Thursday that will make the state the
first to cap greenhouse gas emissions, despite opposition from
industry and energy groups that call it “a job killer.”

But Republican Gov. Arnold Schwarzenegger, who gets high
marks from environmentalists, backed the bill on Wednesday,
saying it “strengthens our economy, cleans our environment.”

He and other bill supporters believe business can make more
money by switching to energy-efficient systems and developing
clean technologies. New jobs will sprout from a burgeoning
service industry to cater to companies’ green demands.

They look at behemoths like General Electric Co., which
unabashedly admits to investing in environmentally friendly
operations because it sees lots of green, as in cash.

Schwarzenegger has been at odds over climate change with
President George W. Bush, who pulled the United States out of
the 160-nation Kyoto Protocol in 2001 because he maintained its
mandatory caps would be harmful for the economy. He also balked
that developing countries like China were wrongly excluded.

In July, the governor upstaged Bush by signing an accord
with British Prime Minister Tony Blair for joint research on
climate action.

The bill to be signed by Schwarzenegger states that, by
taking a global leadership role, California can position its
economy, technology centers, banking and businesses “to benefit
from national and international efforts.”

JOBS AND MONEY

“This is confirmation of a state that knows an economic
opportunity when it sees it,” said Fred Krupp, president of
advocacy group Environmental Defense.

California, the world’s eighth largest economy and 12th
largest producer of greenhouse gases, aims to reduce its
emissions to 1990 levels by 2020, a cut of 25 percent.

Two weeks ago, the University of California, Berkeley,
published a study that California’s global warming action will
add $60 billion to the $1.5 trillion economy and 17,000 jobs
annually.

But if the state also offers innovation incentives to
business, the boost to the economy will be $74 billion and
89,000 new jobs annually, the study said.

State officials note that California has already proved
itself a world leader on reducing carbon dioxide and other
heat-trapping gases with its benchmark law to reduce auto
emissions and renewable energy policies.

They see a gold mine of opportunity in developing giants
China and India rather than a threat to their economy.

“We will be talking to China because they are asking for
our help … on public participation and regulation to deal
with pollution,” California Environmental Secretary Linda Adams
told Reuters.

“Somebody has to be in the lead and generally it is
California,” she added.