After California lawmakers introduced a proposal early Wednesday morning to reauthorize the state's nation-leading cap-and-trade program, Ceres urges the legislature to pass the bill to ensure market stability, efficiently drive the state toward a cleaner economy, and invest in communities.
“California’s economy needs stability, predictability, and efficiency to function at its best, which is why businesses and investors across the economy support reauthorizing the cap-and-trade program,” said Kelly Trombley, senior director of state policy, Ceres. “The legislature’s reauthorization proposal extends and strengthens the program, aligning it with California’s 2045 climate goals and legislators’ policy priority of improving energy affordability. Reauthorization provides a strong foundation to continue investing in California’s communities, give businesses stability and predictability, and reduce pollution that threatens the economy and public health. At a time of economic uncertainty and sorely needed climate leadership, California lawmakers must reauthorize this nation-leading program before the end of the legislative session.”
California’s cap and trade system is slated to expire in 2030 and extending it through 2045 was an urgent priority in this legislative session. The long-term certainty positions the program to meet the state’s pledge to effectively eliminate climate pollution by 2045, while also supporting the cap-and-trade market that has weakened as the 2030 deadline neared — reducing projected revenue to invest in communities by billions of dollars.
Private-sector leaders have strongly supported reauthorizing the program. In August, more than 40 business entities — including Dignity Health, Franklin Energy, Grove Collaborative, IKEA U.S., REI Co-op, Rivian, and Sierra Nevada Brewing Company – signed a letter to lawmakers, saying that extending and improving cap-and-trade “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.