Calfornia adopts sweeping climate laws

California has adopted the most sweeping plan in the US to cut greenhouse gas emissions, issuing rules that could transform everything from the way factories operate to the appliances people buy

and the fuel they put in their cars.

The Air Resources Board unanimously approved the plan despite warnings it would put costly new burdens on businesses at a time when the economy is in extreme crisis – with California forecasting a staggering budget gap of $40bn (€30bn) through mid-2010.

Republican governor Arnold Schwarzenegger said he believed the regulations would encourage the state’s economy and serve as a model for the rest of the country.