Uncovering California's Thriving Carbon Market: An Insider's Guide to the Cap and Trade Program

Discover the Specific Design of The Program, the Associated Economic Impacts, Lesson's Learned, and The Summary of Proceeds.

1. Overview Of The California Cap and Trade Program

2. Design of The Progrm

3. Economic Impacts of The Cap and Trade Program

4. Lesson’s Learned

5. Summary of Proceeds to California and Consigning Entities

Overview of The California Cap and Trade Program

The California Cap and Trade Program is a pioneering climate change policy designed to reduce greenhouse gas emissions from the state's largest sources. The program sets a limit, or "cap," on the amount of greenhouse gases that can be emitted by covered entities, such as power plants, oil refineries, and other industrial facilities. These entities are required to purchase allowances to cover their emissions, with the total number of allowances declining over time.

This creates a market-based incentive for companies to reduce their emissions, as they can sell any unused allowances to other companies that need them. The California Cap and Trade Program is considered one of the most ambitious and comprehensive carbon pricing programs in the world and is expected to play a critical role in meeting the state's climate change goals.