Ceres applauds California lawmakers for passing AB1207 and reauthorizing the state’s cap-and-invest system, ensuring the nation-leading program will continue to efficiently drive California toward a cleaner economy while investing in its communities.
“The California State Legislature has taken decisive action to provide long-term certainty and stability, ensuring the state and its companies continue to lead the nation in managing climate pollution and clean energy for decades to come,” said Kelly Trombley, senior director, state policy, Ceres. “This legislation strengthens a proven program, returns dollars to Californians, and drives new investments into communities and the state economy. Ceres and the businesses we work with commend lawmakers for extending cap-and-invest this year and urge Gov. Newsom to sign AB1207 into law as soon as possible.”
California’s cap-and-invest system (formerly known as cap-and-trade) is slated to expire in 2030. Extending it through 2045 has been an urgent priority this legislative session. The long-term certainty provided by this legislation aligns the program with the state’s pledge to effectively eliminate climate pollution by 2045. It will also support the cap-and-trade auction market that has weakened as the 2030 deadline neared – reducing projected revenue to invest in communities by billions of dollars. The extension also strengthens the program to prioritize affordability for ratepayers across the state.
Private-sector support was crucial to helping secure legislation that extends the program. Businesses including Dignity Health, Franklin Energy, Grove Collaborative, IKEA U.S., REI Co-op, Rivian, and Sierra Nevada Brewing Company were among the more than 40 business entities that signed a letter in August, telling lawmakers that extending and improving cap-and-invest “is the smartest way to tackle the climate crisis by prioritizing cost-effective achievement of California’s climate targets, making California more affordable, and supporting California communities.”
About Ceres
Ceres is a nonprofit advocacy organization working to accelerate the transition to a cleaner, more just, and resilient economy. With data-driven research and expert analysis, we inspire investors and companies to act on the world's sustainability challenges and advocate for market and policy solutions. Together, our efforts transform industries, unlock new business opportunities, and foster innovation and job growth – proving that sustainability is the bottom line. For more information, visit ceres.org.