California moves on global warming, warned on cost

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By Peter Henderson

SAN FRANCISCO (Reuters) - California set detailed goals to cut greenhouse gases and address global warming on Thursday in the face of strong criticism that an economic analysis buttressing the plan was hopelessly optimistic.

A 2006 landmark California law set the ambitious goal of cutting carbon emissions linked to global warming to 1990 levels by 2020.

The California Air Resources Board voted on Thursday to adopt a plan to fill in details of how to do it, from forest conservation to energy efficiency and industrial carbon emissions.

Such cuts would be about 30 percent below projected business-as-usual levels for 2020, and debate has moved from whether carbon cuts are needed to a cost-benefit analysis of means to do so in the midst of an economic meltdown.

"We have laid out a plan which if followed can transform our economy," board Chairman Mary Nichols said as all eight board members approved the plan.

Critics say the plan is full of unreasonable assumptions and before the vote urged the state to reconsider.

"This plan is an economic train wreck waiting to happen. Up until now that train wreck has only existed on paper," said California Hispanic Chambers of Commerce Legislative Affairs Chairman James Duran.

But the board, responsible for carrying out the 2006 law, said it sees the growth of green business more than making up for the costs.

(Reporting by Peter Henderson and Syantani Chatterjee, Editing Doina Chiacu)

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