California (United States) · Emissions trading system
California Cap-and-Invest Program (formerly Cap-and-Trade)
California's cap-and-trade program, now called Cap-and-Invest, has imposed compliance obligations since January 2013 and puts a carbon price on about 76% of state greenhouse gas emissions. Legislation adopted in September 2025 extended the program through 2045, and the Air Resources Board adopted implementing amendments on 29 May 2026, effective 1 September 2026.
In forcesince 1 Jan 2013Verified 4 Oct 2026
The program was established under the Global Warming Solutions Act of 2006 (AB 32) and is administered by the California Air Resources Board (CARB). It began operation in 2012, with compliance obligations from January 2013, and covers fuel combustion emissions across mining, power, buildings, transport, industry, agriculture and forestry. It has been linked with Québec's system since January 2014.
In September 2025 California adopted AB 1207 and SB 840, extending the program through 2045 under the Cap-and-Invest name. CARB adopted regulatory amendments on 29 May 2026 that set allowance budgets through 2045, introduce a Manufacturing Decarbonization Incentive, place offset credits under the cap and expand affordability measures; they take effect on 1 September 2026.
Legal journey
From proposal to operation
-
Enacted
Global Warming Solutions Act (AB 32) signed by the Governor
leginfo.legislature.ca.govOfficial -
In force
Cap-and-trade compliance obligations begin under a declining emissions cap
ww2.arb.ca.govOfficial -
Milestone
AB 1207 signed, extending the program through 2045 as Cap-and-Invest
leginfo.legislature.ca.govOfficial -
Milestone
Air Resources Board adopts amendments setting budgets to 2045; in force 1 September 2026
icapcarbonaction.com
Each milestone links to the page it was checked against. Dates are given only to the precision the source supports.
Compare
Other emissions trading systems on the Radar
- AustraliaSafeguard Mechanism (reformed 2023)In force
- CanadaFederal Output-Based Pricing System (OBPS)In force
- ChinaChina National Emissions Trading SystemIn force
- IndiaIndian Carbon Credit Trading Scheme (CCTS) — compliance mechanismIn force