Governor Gavin Newsom, Senate President pro Tempore Mike McGuire, and Assembly Speaker Robert Rivas have stated their intention to extend California’s cap-and-trade program. This climate pollution reduction initiative, which is currently set to expire in 2030, requires legislative action for its continuation.
Governor Newsom highlighted in his proposed budget that extending the program could enhance market certainty, attract investment, and help California reach its carbon-neutrality goal by 2045. The announcement occurs against the backdrop of the Trump Administration’s planned reductions to federal environmental programs and efforts to hinder state-level climate initiatives.
Governor Gavin Newsom, Senate President pro Tempore Mike McGuire, and Assembly Speaker Robert Rivas emphasized, “California must continue to lead on reducing pollution and ensuring our climate dollars benefit all residents. That’s why we’re doubling down on cap-and-trade: one of our most effective tools to cut emissions and create good-paying jobs.”
The cap-and-trade program has a record of holding carbon polluters accountable by charging them for excess emissions. The funds raised are used for projects to improve air quality, public health, and environmental conservation. Additionally, Californians receive direct benefits through the California Climate Credit on their utility bills.
The program has been successful in investing $28 billion in various projects over the last decade, achieving significant reductions in carbon emissions while allowing economic growth. Specifics of the proposal to extend the cap-and-trade program will be disclosed shortly.
