Ceres urges timely adoption of California cap-and-invest adoption

SACRAMENTO, CA — Ceres today urged the California Air Resources Board (CARB) to adopt the state’s updated cap-and-invest program without delay while maintaining the integrity of the program, emphasizing that any delay “would undermine market confidence, disrupt business planning, and signal instability at exactly the wrong moment.”  

Ceres Senior Manager, State Policy, West, Maggie Field testified at a CARB hearing on the program and underscored concerns about the structure of the Manufacturing Decarbonization Incentive (MDI), a proposed mechanism within the cap-and-invest program that would provide additional emissions allowances to support industrial decarbonization projects at manufacturing facilities.  

“We urge that the monitoring and reporting be explicitly tied to progress toward California’s statutory climate milestones — not just project level outcomes—to give investors and businesses the confidence to plan long-term,” Field testified. 

In written public comments submitted to CARB in May, Ceres also warned that by creating millions of allowances outside and above the cap, the MDI could weaken market integrity, depress allowance prices, and reduce revenue for critical state programs.  

Read the full public comment letter here.  

Business and investors have been strong supporters of the program. Last year, Ceres worked with more than 40 businesses and organizations—including Dignity Health, Franklin Energy, Grove Collaborative, IKEA U.S., REI Co-op, Rivian, and Sierra Nevada Brewing Company—to urge lawmakers to reauthorize the state’s landmark cap-and-invest program. In a letter to lawmakers, they emphasized that a strong cap-and-invest program “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.”  

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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.