California unanimously adopted amendments to the cap-and-trade program that set major market rules after 2020. These amendments update the program based on AB 398 (E. Garcia), which was passed by the Legislature in 2017 and directed state regulators to extend the cap-and-trade program until 2030. Today’s regulatory action makes important and impactful updates to the program but also represents consistency and continuation of a successful limit on carbon pollution. With cap and trade in place, emissions in 2016 fell below levels required by 2020 while the state’s economy was growing to become the fifth largest in the world.
“Today’s regulatory action shows California continues to set the carbon market gold standard. The California system is helping cut pollution ahead of schedule while the economy thrives. The Air Resources Board understands that details matter, and EDF is eager to work with them and other partners to continuously refine this groundbreaking program.”
For more information on California’s cap-and-trade program, please see this factsheet.