The California Cap-and-Trade Program was launched in 2013 and is a critical strategy for the state to meet its greenhouse gas emission reduction goals. This program is created to encourage polluting companies - such as oil refineries, power plants and manufacturers - to invest in cleaner, more efficient technologies. It does so by placing a limit (“cap”) on the permissible emissions and requires polluters to purchase or trade for “allowances” that will allow them to continue their activities beyond the existing cap.

 

Over time the number of “allowances” available for polluters to purchase or trade will decline, with the idea that polluters will have transitioned towards less polluting practices. It should be noted that the program has been widely criticized by environmental justice groups who believe that the program is not addressing the unhealthy conditions currently impacting low-income and minority communities. The program continues to collect revenue and invest its resources across the state with the goal of slashing turn-of-the-century emission levels by 40% by the year 2030.   

 

For more information on the the Cap-and-Trade Program visit the link below.