CARB adopts Cap-and-Invest Program updates extending program through 2045

The California Air Resources Board adopted comprehensive updates to the state's Cap-and-Invest Program (formerly Cap-and-Trade), extending it through 2045 following legislative authorization through SB 840 and AB 1207 in 2025. The adopted changes maintain California's path toward meeting 2030 and 2045 climate targets while supporting affordability for Californians. The program covers approximately 80% of California's climate emissions and has achieved nearly 100% compliance over 13 years of operation. The updates balance legislative direction, affordability, jobs and near-term economic concerns while ensuring emissions reductions and providing long-term market signals for clean energy investment. Estimated compliance cost is $124 billion over the 20-year lifetime, approximately $20 billion less costly than scenarios analyzed in April 2024.