California, September 10, 2025
News Summary
California business leaders are urging lawmakers to develop a thorough plan for the state’s cap-and-trade climate program to avoid overlooked issues that could hinder economic stability. The call comes as recent carbon allowance auctions have underperformed, raising concerns about the program’s renewal and its implications for emissions reduction goals. Stakeholders emphasize that without a strong, holistic approach, the state may struggle to achieve its ambitious climate targets.
California business leaders have voiced their disappointment over the lack of a comprehensive and viable plan to extend the state’s cap-and-trade climate program. This significant program, which is aimed at reducing carbon emissions by requiring major polluters to purchase allowances, may face substantial setbacks if not renewed.
A coalition of organizations representing a range of economic sectors has urged state lawmakers to reject last-minute proposals that do not fully address the future of the cap-and-trade program. They are calling for the Legislature to halt the current efforts until a thorough and economically balanced plan can be established, as no comprehensive legislation has been properly evaluated through the policy committee process in either legislative house.
It has been nearly five months since California state leaders committed to reauthorizing this crucial climate law, highlighting the urgency of the matter. Recent state carbon allowance auctions have generated less revenue than anticipated, which has failed to motivate serious planning for the program’s future. Industry experts warn that if proper evaluations and consultations do not occur, the resulting policies may lead to increased costs for families and businesses across the state.
Key stakeholders, including business and environmental leaders, have expressed concerns over the current trajectory of discussions. They argue that hastily crafted policies could compromise affordability and economic stability. The increasing urgency is echoed by the reminder that California aims to reduce emissions to 40% below 1990 levels by 2030 and achieve carbon neutrality by 2045.
Governor Gavin Newsom’s office has indicated its commitment to ensuring the cap-and-trade program continues and supports a collaborative approach to negotiations. However, environmental groups are concerned that ongoing delays could hinder California’s connections with other domestic and international cap-and-trade programs, potentially undermining the state’s climate initiatives.
Critics of the existing cap-and-trade program raise concerns that it has allowed pollution levels to persist in low-income neighborhoods without substantial improvements to air quality. Simultaneously, a recent study has indicated that significant emission reductions are necessary if California hopes to meet its ambitious climate goals.
Industry leaders have warned that significant policy shifts may result in job losses and higher consumer prices, adding to the contention surrounding the program’s renewal. The California Air Resources Board is currently reviewing possible enhancements to improve the effectiveness of the cap-and-trade framework, yet it has faced criticism regarding its lack of stakeholder engagement during the review process.
The ultimate decision regarding the future of California’s cap-and-trade program carries significant environmental, economic, and political implications. Without a renewal, the prices of allowances may remain low, which could limit potential future revenue and hinder the state’s goal of significantly reducing greenhouse gas emissions.
Background on Cap-and-Trade Program
Established in 2006, California’s cap-and-trade program is designed to limit carbon emissions through a market-based approach that allows companies to buy and sell emissions allowances. This system has raised billions of dollars in revenue, which is used to fund various climate and environmental initiatives across the state. However, repeated criticisms focus on the effectiveness of the program and its fair application across diverse communities.
Next Steps
As discussions progress, stakeholders across multiple sectors are advocating for a more thoughtful approach to cap-and-trade renewal, emphasizing the need for well-informed, comprehensive plans that take into consideration the diverse perspectives of all who will be impacted. In doing so, California can better navigate its path toward achieving significant environmental goals while ensuring economic stability for its residents.
Frequently Asked Questions
What is the cap-and-trade program?
The cap-and-trade program in California aims to limit carbon emissions by requiring major polluters to purchase allowances for their emissions, thus providing an economic incentive to reduce pollution.
Why are business leaders concerned about the program’s renewal?
Business leaders are worried that hasty or poorly considered proposals will lead to increased costs for families and businesses, ultimately harming the state’s economy.
What are the climate goals California is trying to achieve?
California aims to reduce greenhouse gas emissions to 40% below 1990 levels by 2030 and achieve carbon neutrality by 2045.
What role does the California Air Resources Board play?
The California Air Resources Board oversees the implementation and management of the cap-and-trade program and is exploring potential changes to improve its effectiveness.
Deeper Dive: News & Info About This Topic
- Sacramento Bee
- Wikipedia: Cap-and-trade
- VC Star
- Google Search: California cap-and-trade
- CalChamber Advocacy
- Encyclopedia Britannica: Cap-and-trade
- Bloomberg Government
- Google News: California business groups cap-and-trade
Author: STAFF HERE CORONADO
The Coronado Staff Writer represents the experienced team at HERECoronado.com, your go-to source for actionable local news and information in Coronado, San Diego County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Coronado Island Film Festival, productions at Lamb’s Players Theatre, community workshops at John D. Spreckels Center, and iconic celebrations at Hotel del Coronado. Our coverage extends to key organizations like the Coronado Chamber of Commerce and Visit Coronado, plus leading businesses in hospitality, dining, and tourism that drive the local economy. As part of the broader HERE network, including HERESanDiego.com, HEREHuntingtonBeach.com, HERELongBeach.com, and HERELosAngeles.com, we provide comprehensive, credible insights into Southern California's dynamic landscape.
