As discussions continue regarding the extension of California’s Cap-and-Invest program, new reports underscore its importance to the state’s economic future. Governor Gavin Newsom and legislative leaders are working on extending this climate initiative, also known as Cap-and-Trade, which is crucial for job creation and economic growth.
A study by the Environmental Defense Fund and Greenline Insights indicates that extending the program through 2045 could generate 287,000 jobs, $55 billion in economic growth, and $232 million in net savings for households. Additionally, it is estimated to raise at least $47 billion for California Climate Investments.
The program has already contributed $28 billion over the past decade, reducing emissions significantly. However, a report from Clean and Prosperous California highlights financial losses due to uncertainty about the program’s extension. The state reportedly lost up to $3 billion in potential revenue last year because of poor auction results linked to this uncertainty.
Clean and Prosperous California warns that without reauthorization by the legislature, California may continue losing between $600 million and $1 billion in revenue per quarterly auction.
Governor Newsom, Assembly Speaker Robert Rivas, and Senate Pro Tempore Mike McGuire have emphasized their commitment to extending the program: “Cap-and-trade is a huge success and, working together, we’ll demonstrate real climate leadership that will attract investment and innovation to deliver the technologies of tomorrow, right here in California.”
