Aides say discussions between British Prime Minister Tony Blair and Governor Schwarzenegger include market-based solutions that would give businesses credits—that could be sold to other companies--  for meeting emission standards. A bill proposed in the state legislature would set a cap on greenhouse gas emissions…     Bernadette Del Chiaro with Environment California says that must come first. 

“By talking about trading before we have a cap, it’s a little bit like putting the cart before the horse. California first and foremost has to establish a cap on global warming pollution so that our biggest polluters in the state reduce global warming.  It’s that simple…”
 
The proposal is backed by the Democratic leader of the state Assembly and is opposed by the California Chamber of Commerce.  The Chamber says a cap discourages economic growth and has no proven environmental benefits.