Lawsuit threats cloud California cap-and-trade scheme

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California's efforts to launch its own cap-and-trade programme for emissions of greenhouse gases face a key test on November 14, when the state holds its inaugural auction for California Carbon Allowances (CCAs). If successful, the auction will kick-start trading in what promises to become the world's second-largest carbon market after the European Union Emissions Trading Scheme (EU ETS), measured in terms of the total amount of emissions covered.

US emissions traders – who have been

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