Proposition 23 Rejection Legitimizes Climate Policy

Published: 03 November 2010

9 pages, 4 figures

EXECUTIVE SUMMARY

On November 2, 2010 61% of Californians voters rejected Proposition 23, a measure to suspend the implementation of California’s Global Warming Solutions Act of 2006 until the State’s unemployment rate fell below 5.5% . This report assesses the implications of the state-wide ballot on Proposition 23, which was funded by two Texas-based oil refiners, and opposed by cleantech investors, environmental groups and services firms. The rejection of the Proposition 23 legitimizes California’s climate change policies. Key policies that will now go ahead include cap-and-trade regulation, targets to reduce transport-related emissions, clean car and clean fuel standards, expansion of energy efficiency programmes, and a target of 33% of state-wide energy from renewables. The Proposition 23 battle is a microcosm of the global debate over wealth redistribution triggered by a shift away from fossil fuels where special interest groups disagree on State-level climate policy, politicians in US States who represent different vested interests on climate policy, and national governments who fail to agree on global policy.

TABLE OF CONTENTS

CALIFORNIA’S VOTERS SUPPORT GLOBAL WARMING SOLUTIONS ACT
Rejection Of Proposition 23 Legitimizes California’s Climate Change Policies
California’s Proposition 23 Clarifies Global Fossil Fuel-Cleantech Battle Lines

TABLE OF FIGURES

Figure 1. Campaign Finance Supporting And Opposing Proposition 23
Figure 2. California ARB Recommended Greenhouse Gas Reduction Measures
Figure 3. California’s Greenhouse Gas Emissions - A Demand-Side View (2002-2004)
Figure 4. Economic And Policy Consequences Of Proposition 23 Ballot Election Results

COMPANIES MENTIONED

A123 Systems, California Air Resources Board, California Energy Commission, California Public Utilities Commission, California Truckers Association, Environmental Defence Fund, US Environmental Protection Agency, Farallon Capital Management, Fisker Automotive, Flint Hills Resources, Kleiner Perkins Caufield & Byers, Mission NewEnergy, Sierra Club, Tiger Management Consulting Group, Tesoro, Tower Energy Group, Valero