California will become the first state to cap greenhouse gas emissions, should a deal reached between Gov. Schwarzenegger and state Democrats pass the Legislature. The deal is seen as a betrayal by Republicans, who oppose a state cap on emissions.

Schwarzenegger has been attempting to make himself more palatable to Democrats in the run-up to the gubernatorial election.

BBC News:

Under the plan major industries would be required to cut their output of greenhouse gases, and would be able to trade emissions credits.

Overall, California’s emissions should be cut by 25% by 2020.

“We can now move forward with developing a market-based system that makes California a world leader in the effort to reduce carbon emissions,” the governor said in a statement.

The state, the most populous in the US, is the world’s 12th largest emitter of greenhouse gases.

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