California governor, Arnold Schwarzenegger has signed a new bill which will seek to cap the state's emissions.

It is the first law of its kind in the US and will see a cap placed on the permissible level of greenhouse gas emissions produced by the state, in an effort to cut emissions levels to those of 1990 by 2020.

The law will place an emissions limit on utilities, refineries and manufacturing plants across California.

Mr Schwarzenegger described the new law as the beginning of "a bold new era of environmental protection that will change the course of history".

UK prime minister Tony Blair also joined in the announcement of the new bill, via video link from Manchester, and he described the signing of the new regulation as "a historic day for the rest of the world" as well as for California and the US.

The state is already involved in legal wrangles with the automotive industry over emissions produced by the sector and this latest bill will continue the pressure on vehicle manufacturers to produce low emissions vehicles.

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