Extend and Strengthen California’s Cap-and-Trade Program

The cost of living is rising across California and more wildfire disasters and other extreme weather events are only adding to the strain on our families and communities.

We need smart solutions that protect our communities and help lower everyday costs. One of California’s most powerful tools to reduce the state’s emissions and generate revenue for critical public investments is the state’s Cap-and-Trade program.

What is Cap-and-Trade?

Cap-and-Trade is a simple idea: companies that produce a lot of climate pollution should have to pay for it. By charging big corporate polluters for burning dirty fossil fuels, Cap-and-Trade reduces pollution while generating funds to clean the air, fight wildfires, and lower electricity bills.

Over time, the program “cap” gets lower, reducing how much polluters are allowed to burn, and eventually driving that amount to zero — enabling California to transition to a completely clean energy economy.

But, there are ways to improve the current Cap-and-Trade program, like taking back about $900 million per year in giveaways to big polluters and instead investing that money in our communities.

Why It Matters Now

The current program is set to expire and needs to be extended. Lawmakers are now faced with a choice of how to reauthorize this program – whether to weaken or strengthen it, putting billions of dollars in funding at risk.

Extending and strengthening Cap-and-Trade could mean:

  • A stronger cap on pollution
  • More funding for wildfire protection and community resilience
  • Investments that help lower long-term electricity and other costs for Californians

Cap-and-Trade is not only central to California’s modernization as we transition away from fossil fuels but, if strengthened, it can also be a key driver of economic opportunity and environmental protection across the state. The extended program should be designed to support working families and uplift frontline communities as our state transitions away from dirty fossil fuels.

Take Action

Take action today! Tell Governor Newsom and your state representatives to extend and strengthen the Cap-and-Trade program to improve air quality, increase affordability, and move towards a healthier and more prosperous future.

Take Action Today

Protecting our communities from the devastating and far-reaching impacts of climate change and supporting policies and programs that advance the clean energy transition.

Learn more about the work we’re doing to protect California’s climate.