Gov. Gavin Newsom and top Democratic lawmakers announced plans Tuesday to extend California’s cap-and-trade program, despite opposition from President Trump, who claims state climate policies endanger national security.
Lia Russell reports for The Sacramento Bee.
In short:
- President Trump issued an executive order accusing state-level environmental rules like California’s cap-and-trade program of undermining “energy dominance” and increasing energy costs.
- Gov. Newsom, along with legislative leaders, pledged to reauthorize the program — which requires businesses to buy carbon credits or cut emissions — before it expires in 2030.
- The California Air Resources Board warned last year that the state is not on track to meet its 2030 carbon reduction goals, even with the current cap-and-trade framework in place.
Key quote:
“California must continue to lead on reducing pollution and ensuring our climate dollars benefit all residents.”
— joint statement by Gov. Gavin Newsom, Assembly Speaker Robert Rivas, and Senate President Pro Tem Mike McGuire
Why this matters:
California’s cap-and-trade system stands as one of the few major state-led climate strategies in a time when federal environmental policy is moving in the opposite direction. The program sets a declining cap on emissions and allows polluters to trade credits, incentivizing reductions across sectors. Supporters call it an efficient market-based tool to drive climate progress, but critics say it lets major polluters off the hook. As fossil fuel production surges nationally under Trump’s second term, the contrast between federal and state policy is growing starker. The outcome of California’s legislative debate could influence other states considering similar market-based approaches.
Related: Trump moves to block state climate rules and lawsuits tied to fossil fuel emissions
