California, September 10, 2025
News Summary
California business leaders are expressing disappointment over the lack of a viable plan for extending the state’s cap-and-trade climate program. A coalition of various economic sectors is urging lawmakers to pause legislative efforts due to inadequate stakeholder engagement and concerns regarding the program’s future. With urgent deadlines approaching, there are increasing calls for better policy review and deeper engagement to ensure both economic needs and environmental goals are met. The situation raises significant implications for California’s economy and its ambitious climate targets.
California business leaders have voiced their disappointment over the absence of a comprehensive and economically viable plan to extend the state’s cap-and-trade climate program. The coalition of diverse organizations representing various economic sectors is urging lawmakers to reject any last-minute proposals, calling for a halt to current legislative efforts until a robust plan can be developed. This news comes nearly five months after state leaders committed to reauthorizing the landmark climate law, which aims to strike a balance between economic impacts and environmental objectives.
Significant concerns have been raised regarding the legislative process surrounding the renewal of the cap-and-trade program. No comprehensive legislation was adequately scrutinized through the appropriate policy committees in either house of the Legislature. Stakeholders, including industry representatives and environmental advocates, were not involved in the development of recent proposals, leading to criticisms of poor policymaking.
Recent auctions for state carbon allowances have brought in less revenue than anticipated, highlighting a lack of serious planning for the program’s future. Business leaders express that the absence of a proposal is preferable to advancing a poorly constructed one, as it would lead to increased costs for families and businesses alike. The situation is especially concerning for the oil and gas sector, which is facing affordability challenges.
Time is running short to develop a workable solution as lawmakers work against a tight deadline to reauthorize the cap-and-trade legislation. Given that a renewal is necessary for California to meet its ambitious climate goals—namely, reducing emissions to 40% below 1990 levels by 2030 and achieving carbon neutrality by 2045—there are increasing calls for deeper stakeholder engagement and a more thorough policy review.
The cap-and-trade program overview
Originally established in 2006, the cap-and-trade program aims to limit carbon emissions by mandating that major polluters purchase allowances for their emissions. Without a renewal of this system, experts warn that allowance prices could remain low, which may further limit future revenue and hamper California’s ability to meet greenhouse gas reduction targets. The current program has also faced scrutiny for not effectively addressing pollution in low-income neighborhoods.
The California Air Resources Board is in the process of reviewing potential changes to enhance the existing program. However, the Board has faced criticism for how it has engaged with various stakeholders regarding these potential changes. Environmental groups express concerns that delays in reauthorization could adversely impact California’s connections with other cap-and-trade initiatives both domestically and internationally.
In summary, the future of California’s cap-and-trade program remains uncertain as stakeholders from various sectors advocate for a more thoughtful and comprehensive approach to its reauthorization. Industry leaders emphasize the risks associated with hasty policy changes, including potential job losses and increased consumer prices. The implications of this decision hold significant weight for the state’s economy, environment, and political landscape.
Key implications and stakeholders
- Economic Impact: A renewal without thoughtful engagement may lead to increased costs for families, potentially resulting in job losses.
- Environmental Goals: Nonrenewal could ultimately impede California’s efforts to achieve its climate targets, including significant reductions in greenhouse gas emissions.
- Stakeholder Engagement: Enhanced communication and consultation among stakeholders are critical to developing a viable and comprehensive plan.
Current Status and Future Outlook
Governor Gavin Newsom’s office remains committed to extending the cap-and-trade program, promoting a collaborative negotiation approach. However, the timeline is tightening, and stakeholders are increasingly concerned about the likelihood of achieving a comprehensive agreement that adequately addresses both environmental and economic needs.
FAQ
What is California’s cap-and-trade program?
The cap-and-trade program is a regulatory system that limits carbon emissions by requiring large polluters to purchase emissions allowances.
Why are California business leaders disappointed?
Business leaders are disappointed due to the lack of a comprehensive and economically viable plan for extending the cap-and-trade program and the inadequate stakeholder engagement in policy development.
What are the implications of not renewing the cap-and-trade program?
If the program is not renewed, California may struggle to meet its climate goals, and the prices of carbon allowances may remain low, limiting potential revenue for environmental projects.
What are the state’s climate goals?
California’s climate goals include reducing emissions to 40% below 1990 levels by 2030 and achieving carbon neutrality by 2045.
Key Features of California’s Cap-and-Trade Program
| Feature | Description |
|---|---|
| Established | 2006 |
| Goals | Reduce emissions to 40% below 1990 levels by 2030 and achieve carbon neutrality by 2045 |
| Stakeholder Engagement | Critics argue for better engagement and consultation of economic sectors |
| Revenue Generation | Auctions provide funding for various environmental initiatives |
| Environmental Impact | The program aims to curb pollution, specifically in low-income neighborhoods |
Deeper Dive: News & Info About This Topic
- Sacramento Bee: California Cap-and-Trade Concerns
- Los Angeles Times: California Cap-and-Trade at a Crossroads
- California Chamber of Commerce: Business Leaders Urge Extension of Cap-and-Trade
- Google Search: California Cap-and-Trade Program
- Wikipedia: Cap-and-trade
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MISSION VIEJO STAFF WRITER The MISSION VIEJO STAFF WRITER represents the experienced team at HEREMissionViejo.com, your go-to source for actionable local news and information in Mission Viejo, Orange 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 Oso Fit 5K Fun Run and Community Health Fair, Walk Against Drugs & Community Fair, and National Night Out. Our coverage extends to key organizations like the Mission Viejo Chamber of Commerce and Providence Mission Hospital Mission Viejo, plus leading businesses in retail and education that power the local economy such as The Shops at Mission Viejo, Capistrano Unified School District, and Amazon Delivery Station. As part of the broader HERE network, including HEREAnaheim.com, HEREBeverlyHills.com, HERECostaMesa.com, HERECoronado.com, HEREHollywood.com, HEREHuntingtonBeach.com, HERELongBeach.com, HERELosAngeles.com, HERESanDiego.com, and HERESantaAna.com, we provide comprehensive, credible insights into California's dynamic landscape.
