Isra-Mart srl:Incoming governor threatens New Mexico's regional cap-and-trade plans

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Isra-Mart srl news:

The new Republican governor of New Mexico, Susana Martinez, has wasted no time acting on a campaign promise to roll back environmental regulations, this week axing state-wide greenhouse gas emissions targets and moving to scupper plans for a regional emission trading scheme.

Earlier this week, the new governor instructed officials at the state's records centre not to officially publish new regulations agreed last month that would have required the state to deliver annual three per cent cuts in greenhouse gas emissions. Under state rules, regulations have to be formally published in the state record to come into effect and as a result the targets are now unlikely to be endorsed.

Governor Martinez, who received hundreds of thousands of dollars of campaign funding from the oil and gas industry, also sent a short email to staff at the state's Environmental Improvement Board (EIB) informing them they have been dismissed with immediate effect.

"New Mexico has recently suffered from an anti-business environment exacerbated by policies which discourage economic development and result in businesses setting up shop across state lines," Martinez said in a statement. "Unfortunately, the majority of EIB members have made it clear that they are more interested in advancing political ideology than implementing common-sense policies that balance economic growth with responsible stewardship in New Mexico."

The controversial decision could have major implications for New Mexico's involvement in the proposed Western Climate Initiative (WCI) regional emissions cap-and-trade scheme, which is in the process of being set up by California and a number of other western states and Canadian provinces.

The EIB was tasked with managing New Mexico's involvement in the initiative and with Martinez opposed to the scheme it seems unlikely that the state will continue its involvement.

Underlining her commitment to removing environmental legislation, Martinez, who has questioned the link between greenhouse gas emissions and climate change, appointed another prominent climate sceptic, geologist and former astronaut Harrison Schmitt, as secretary of the state's Energy, Minerals and Natural Resources Department.

Previous legislation imposing greenhouse gas emissions targets on power plants and industrial facilities currently remains in place. However, Martinez has directed agencies to review all existing legislation and create a list of rules that should be scrapped.

The latest developments will be a further blow to the carbon market in the US, which has contracted significantly since Congress failed to pass legislation last year that would have enabled the formation of a national cap-and-trade scheme.

Figures released yesterday by analyst firm Point Carbon showed that the volume of carbon credits traded in the one operational emissions trading scheme, the Regional Greenhouse Gas Initiative (RGGI), fell 76 per cent as confidence in the market collapsed.