ICYMI: 287,000 jobs and $55 billion in economic growth on the line with key climate program’s extension

SACRAMENTO – As Governor Gavin Newsom and legislative leaders continue to work on extending the state’s preeminent climate program – Cap-and-Invest – new reports out this week highlight how critical the program is to the state’s economic future, and how uncertainty is costing the state billions. 

According to a study released by the Environmental Defense Fund and Greenline Insights, extending Cap-and-Invest, also known as Cap-and-Trade, through 2045 is “expected to generate 287,000 jobs, $55 billion in economic growth, and $232 million in net savings for households.” Extending the program is estimated to “raise a minimum of $47 billion for California Climate Investments.” 

That builds on the program’s $28 billion already invested in the last 10 years – which has wiped out emissions equivalent to taking 80% of the state’s gas cars off the road.

This comes as another report released this week shows the need for extension this year. According to Clean and Prosperous California, the program has lost up to $3 billion in potential revenue in the past year due to poor auction results “caused by uncertainty over legislative extension.” 

Clean and Prosperous California reports: “We expect California will continue losing between around $600 million and $1 billion in revenue from each quarterly auction until the California legislature reauthorizes the cap-and-trade program.” 

As Governor Newsom, Assembly Speaker Robert Rivas, and Senate Pro Tempore Mike McGuire said in April announcing efforts to extend the program this year: “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.”