California announced on Thursday that it would become the first state to require greenhouse gas reports from industrial companies that do business in the state. These emissions will be factored into the state's overall emissions target for 2020, which was recently set forth by the California Air Resources Board (CARB). The target law - the Global Warming Solutions Act - stipulates that emissions must be at 1990-levels by the year 2020 - that's a 30% reduction in emissions over 12 years.

Owners of power plants, oil refineries, paper mills and other industries that generate more than 25,000 tons of CO2 per year will need to report their own greenhouse gas emissions by next year, but an independent body will confirm the self-evaluations of these industries by 2010.

If California is to reach their goal of reducing emissions to 1990 levels, they must prevent the emission of 173 million metric tons of greenhouse gas, said a CARB spokesperson. CARB calculated emissions from 1990 at 427 million metric tons and predicted that the year 2020 would see emission levels of 600 million metric tons if action is not taken. Currently, the state of California has an emissions level of 500 million metric tons.

CARB also analyzed the various sources of the top six greenhouse gases - along with CO2, there is methane, nitrus oxide, and three other, primarily industrial gases. While 38% of the state's emissions are caused by transportation, CARB is focusing on the emissions that come from industry.

While the goal is environmental protection, these stringent measures could have an economic benefit as well. Said Devra Wang, director of Natural Resources Defense Council's California Energy program in a Reuters article, "This sends a clear signal to entrepreneurs, innovators and venture capitalists investing in cleaner energy solutions that California is serious about reducing pollution and leading the clean tech industry."