Cap-and-Trade Continues to Offer Reliable Opportunity for Economic Growth and Climate Action
This week, Governor Gavin Newsom included in his revised state budget plan a proposal to extend California’s cap-and-trade program without any structural changes.
In a joint statement, the California Chamber of Commerce and the California Manufacturers & Technology Association (CMTA) welcomed the proposed extension as a prudent approach that maintains a focus on affordability for Californians while materially reducing emissions.
“A clean reauthorization of the cap-and-trade program through 2045 means that California will continue to balance compliance costs for businesses and consumers while encouraging investments into the state,” said CalChamber President and CEO Jennifer Barrera. “The Governor’s proposal serves as a reminder that economic growth and climate action can advance together.”
“The California Manufacturers & Technology Association strongly supports the Governor’s May Revision proposal to extend the Cap-and-Trade program through 2045,” said CMTA President and CEO Lance Hastings. “This program has generated nearly $33 billion in investments over the past decade and remains a vital tool in advancing the state’s climate objectives. Extending it will reinforce California’s global climate leadership, provide long-term market certainty, and foster sustained private investment, aligning key components in achieving carbon neutrality by 2045.”
California’s climate strategy ensures the state’s leadership in the move toward a low-carbon future without onerous mandates that impede economic progress. Governor Newsom’s announcement is consistent with his January budget that noted an extension of the program will “provide the market with greater certainty, attract stable investment, further California’s climate leadership and set the state on a clear path to achieve its 2045 carbon-neutrality goal.”
“While the cap-and-trade program is not without its costs, it’s become a reliable way to make both climate progress and clean-economy investments,” said CalChamber’s Barrera. “It includes the kind of flexibility that ensures industries continue to grow in California and supports emerging technologies which drive California’s economy.”
