CALIFORNIA – During Climate Week NYC, Gov. Gavin Newsom Sept. 23 announced that he has authorized California to move forward with the process of linking its Cap-and-Invest program to Washington’s carbon market, building on California’s existing partnership with Québec to cut emissions and toxic global pollution. The Governor has made the formal findings legally required for California to move ahead with the final step to link the two States’ markets.
California law requires that the Governor make specific findings about a partner state’s carbon market before CARB may proceed with linking markets. Earlier this month, CARB requested that the Governor make those findings. Today, the Governor announced that, on Sept. 21, he took action to do so, consistent with advice he received from the Attorney General as required by law.
The Governor’s action allows CARB to begin the public regulatory process needed to formally link the markets — the final step before the markets are formally linked. The proposed linkage would create a larger, more stable carbon market to help California continue cutting climate pollution efficiently while supporting investments in cleaner transportation, affordable housing, wildfire resilience, and other community priorities.
About Cap-and-Invest
Cap-and-Invest is estimated to be 4–6 times more cost-effective than traditional prescriptive regulations. Over its 13 years of implementation, the program has undergone eight regulatory updates and has achieved nearly 100% compliance.
It stimulates both direct and indirect investment of tens of billions of dollars into the state’s economy with investments in clean energy, natural and working lands, local transit and rail projects, affordable and sustainable housing, clean water, healthy forests and wildfire prevention and response, and more.
To date, Cap-and-Invest has:
- Helped California meet its first major statewide goal to reduce climate pollution, six years ahead of schedule
- Generated $37 billion dollars for climate investments
- Funded 600,000 projects statewide
- Supported 143,000 jobs
- Cut millions of tons of carbon pollution
- Delivered $16 billion in utility bill credits directly to Californians
Recent updates to the program maintain California’s path toward meeting its 2030 and 2045 climate targets while supporting affordability for Californians by managing costs and maintaining a clear long-term signal for clean energy investment in the state.
The changes are estimated to provide $10 billion in direct relief to electricity customers through bill credits and generate an estimated $8 billion for the Greenhouse Gas Reduction Fund through 2030.
California at Climate Week NYC
Climate Week NYC convenes government leaders, businesses, investors, advocates, researchers, philanthropies, and community leaders from around the world to advance practical climate solutions.
Governor Newsom is participating to highlight California’s record of cutting pollution while growing the economy, strengthen partnerships with international and subnational leaders, and accelerate progress on clean energy, zero-emission transportation, climate resilience, and economic opportunity.