
Cap and trade died an ignominious death in the U.S. Senate in 2010, when proponents were unable to bust a Republican-led filibuster threat. Even after President Obama’s re-election, federal climate action still seems like a long shot. But ultra-green California is a different story. Six years ago, the state legislature passed Assembly Bill 32, designed to establish a statewide cap on carbon emissions from industry. After years of legislative wrangling and one failed ballot challenge in 2010, the law was at last set to go into effect at the end of 2012. Businesses will need to figure out how to reduce their carbon emissions gradually over the coming decade—and if AB32 is successful without crippling California’s economy, it could pave the way for real federal action on global warming.