California's cap-and-trade keeps state on track to meet 2030 emissions target: CARB

Companies covered under California's cap-and-trade program met 100% of emission obligations between 2018 and 2020, keeping the state on track to meet its 2030 greenhouse gas reduction goal, the state said.

The state's cap-and-trade program, initially launched in 2013 after passage in 2006, has been touted as a cornerstone of the state's climate policy by placing firm emission limits on businesses while creating flexibility by allowing businesses to trade emission credits.

Last year, the program was put under review by the state's Environmental Protection Agency as doubts emerged over whether the plan was stringent enough to meet 2030 goals.

In a Nov. 5 statement from the California Air Resources Board, Executive Officer Richard Corey attempted to put those doubts to rest.

"Today's data makes it clear – California's comprehensive regulatory structure continues to deliver greenhouse gas reductions," Corey said. "This high level of compliance with the cap-and-trade regulation demonstrates the continued rigor of the program and the important role it played in California meeting its 2020 emissions reduction target four years ahead of schedule."

The state's 2020 goal was to reduce greenhouse gas emission levels to 1990 levels. California's 2030 goal is to further reduce emissions by 40% below 1990 levels. According to the CARB statement, increased stringency in the program is expected to help the state meet this target.

Businesses covered under the cap-and-trade program account for approximately 80% of all state emissions, according to the agency. Emission allowances are auctioned on a quarterly basis. Proceeds from these auctions have generated $15.4 billion since 2013.

In addition to cap-and-trade program, other programs the state relies on to meet its 2030 goals include the Low Carbon Fuel Standard, the Renewables Portfolio Standard and the Advanced Clean Cars program.