California, September 10, 2025
News Summary
California business leaders are expressing deep disappointment over the lack of a thorough plan to extend the cap-and-trade climate program. As a cornerstone in reducing greenhouse gas emissions, this program requires serious evaluation of proposals to balance economic impacts with environmental goals. With concerns about stakeholder engagement and potential revenue losses, various sectors are urging lawmakers to prioritize careful discussion before enacting any changes, emphasizing the need for effective, well-considered policies that support both economic growth and climate objectives.
California business leaders are expressing significant disappointment over the absence of a comprehensive, economically feasible plan to extend the state’s cap-and-trade climate program. This program plays a critical role in California’s efforts to reduce greenhouse gas emissions and combat climate change.
A coalition of organizations representing various economic sectors is urging lawmakers to reject last-minute proposals that have emerged in the State Capitol. They are advocating for the Legislature to halt current efforts until a robust and well-evaluated plan can be formulated. The concern arises more than five months after state leaders pledged to reauthorize this landmark climate law, which aims to balance economic impacts with environmental goals.
Despite potential revenue gains from state carbon allowance auctions, recent sessions saw less income generated than anticipated, which has not motivated serious discussions about the future of the program. Opponents of the current proposals argue that they have not undergone thorough evaluation through the policy committee process in either legislative chamber, leading to inadequate stakeholder consultation during their development.
Key business leaders have voiced their concerns about the importance of developing effective policies. Those in agriculture, manufacturing, and technology emphasize that poorly crafted legislation could lead to increased costs for families and hinder economic growth. This sentiment highlights the delicate balance lawmakers must find when considering environmental regulations without compromising affordability.
California’s cap-and-trade program, established in 2006, requires major polluters to purchase allowances for their emissions. If the program is not renewed, allowance prices may remain low, negatively impacting future revenue collection and California’s ability to meet its climate goals. The state aims to achieve 40% emission reductions below 1990 levels by 2030 and reach carbon neutrality by 2045.
The office of Governor Gavin Newsom remains committed to renewing the cap-and-trade program and is promoting a collaborative negotiation process. However, there are growing concerns among environmental groups that further delays could jeopardize California’s connections with other similar programs both domestically and internationally. Critics from various sectors emphasize the need for comprehensive stakeholder engagement to ensure that the extension of the program is carefully considered and not rushed.
Despite some environmental advocates asserting that the current cap-and-trade program has not sufficiently improved conditions in low-income neighborhoods, the system has still raised billions in revenues to fund various climate and environmental projects. A recent study suggests that California could fall short of its climate goals if significant emission reductions are not achieved. Industry leaders are worried that substantial changes in policy could lead to job losses and increased prices for consumers.
As the California Air Resources Board reviews potential changes to enhance the effectiveness of the cap-and-trade program, it faces criticism over its stakeholder engagement practices. The future of the cap-and-trade program presents considerable environmental, economic, and political implications, suggesting that all parties must work together to find a solution that addresses the multifaceted challenges associated with climate change.
FAQs
What is the cap-and-trade program in California?
The cap-and-trade program is a regulatory program in California that requires major emitters of greenhouse gases to purchase allowances for their emissions, aiming to reduce overall emissions over time.
Why are business leaders disappointed with the current proposals?
Business leaders are disappointed because the proposals put forward have not been adequately evaluated or consulted with key stakeholders, risking poor policy decisions that could increase costs and harm the economy.
What are the climate goals California aims to achieve?
California aims to reduce emissions by 40% below 1990 levels by 2030 and achieve carbon neutrality by 2045.
What are the implications if the cap-and-trade program is not renewed?
If the program is not renewed, allowance prices may remain low, hindering future revenue for environmental initiatives and potentially causing California to miss its climate targets.
Key Features of the Cap-and-Trade Program
| Feature | Description |
|---|---|
| Established | 2006 |
| Objectives | Reduce emissions by 40% below 1990 levels by 2030; achieve carbon neutrality by 2045 |
| Current Challenges | Lack of comprehensive plan, stakeholder engagement, and rushed proposals |
| Impact of Renewal | Ensures revenue for climate initiatives and maintains California’s environmental goals |
| Future Risks | Potential job losses and increased costs for consumers if poorly crafted policies are enacted |
Deeper Dive: News & Info About This Topic
- Sacramento Bee
- Los Angeles Times
- Ventura County Star
- California Chamber of Commerce
- Politico
- Wikipedia: Cap-and-trade
- Google Search: California cap-and-trade program
- Google Scholar: California cap-and-trade
- Encyclopedia Britannica: Cap-and-trade
- Google News: California cap-and-trade
Author: STAFF HERE HOLLYWOOD
The Hollywood Staff Writer represents the experienced team at HEREHollywood.com, your go-to source for actionable local news and information in Hollywood, Los Angeles 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 Hollywood Bowl summer concerts, the Hollywood Christmas Parade, film premieres at TCL Chinese Theatre, and festivals at the Magic Castle. Our coverage extends to key organizations like the Hollywood Chamber of Commerce and Visit Hollywood, plus leading businesses in entertainment, dining, and tourism that define the local economy. As part of the broader HERE network, including HERELosAngeles.com, HEREBeverlyHills.com, HEREAnaheim.com, and HEREHuntingtonBeach.com, we provide comprehensive, credible insights into Southern California's dynamic landscape.
