(Reuters) – California Governor Jerry Brown and Mexican environmental officials signed a pact on Monday aimed at reducing greenhouse gas emissions, an agreement that could eventually expand the market for carbon credits.
The six-page memorandum of understanding calls for cooperation in developing carbon pricing systems and calls on the partners to explore ways to align those systems in the future.
“California can’t do it alone and with this new partnership with Mexico, we can make real progress on reducing dangerous greenhouse gases,” said Governor Brown.
California operates a carbon cap-and-trade system, which sets a hard limit on the carbon output from large businesses and requires them to either reduce emissions or purchase credits to meet the target. The state is on track to meet its goal of 1990 emissions levels by 2020.
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