Gavin Newsom wants to extend California climate program that’s already spent $28 Billion

Sacramento, California – Governor Gavin Newsom, Senate President pro Tempore Mike McGuire, and Assembly Speaker Robert Rivas announced Tuesday their intention to extend California’s groundbreaking cap-and-trade program beyond its current 2030 expiration date, reaffirming the state’s commitment to aggressive climate action.

The program, considered one of the most effective climate policies in the nation, requires legislative approval to continue past 2030. State leaders say extending the program this year would provide market stability, attract long-term investments, and reinforce California’s leadership in the global climate fight.

“Cap-and-trade is a huge success,” said Newsom in a joint statement. “Working together, we’ll demonstrate real climate leadership that will attract investment and innovation to deliver the technologies of tomorrow, right here in California.”

The move comes as the Trump administration threatens to roll back key environmental protections and cut funding for federal climate programs—efforts Newsom slammed as “a glorified press release masquerading as an executive order.”

California’s cap-and-trade program, launched in 2006 under Republican Governor Arnold Schwarzenegger, charges polluters for emissions that exceed set limits. Revenues generated—$28 billion over the last decade—are funneled into initiatives that reduce pollution, protect public health, and accelerate the transition to clean energy. Projects have included investments in public transportation, wildfire prevention, energy efficiency upgrades, and more.

One key benefit of the program is the California Climate Credit, which gives residents direct financial relief via utility bill credits twice a year.

According to state data, the program has helped slash carbon emissions by 20% since 2000—equivalent to removing 80% of all cars from California roads—while the state’s economy grew by 78% during the same period.

With federal support for climate initiatives uncertain, California leaders say the need for local action is greater than ever. “We’re doubling down on cap-and-trade,” the joint statement read, “because it cuts emissions and creates good-paying jobs.”

Details of the proposed cap-and-trade extension will be released in the coming weeks, and are expected to play a central role in the current legislative session.

Environmental advocates and clean energy experts are closely watching the effort, as California’s cap-and-trade program is widely regarded as a model for balancing economic growth with climate responsibility.