California: Air Resources Board Proposes Amendments to Cap on Greenhouse Gas Emissions for Long-Term Decarbonization

The California Air Resources Board (CARB) will consider amendments to the regulation for the California Cap on Greenhouse Gas Emissions and Market-Based Compliance Mechanisms.

These changes aim to extend the program through 2045, providing regulatory certainty and promoting clean energy investments.

The amendments impact industries involved in greenhouse gas emissions, requiring them to adapt to new compliance mechanisms.

The changes are part of California’s broader strategy to achieve significant emissions reductions and support the state’s climate goals.

The California Air Resources Board (CARB) is set to review proposed amendments to the regulation governing the California Cap on Greenhouse Gas Emissions and Market-Based Compliance Mechanisms, previously known as the Cap-and-Trade Program.

This review will take place on May 28, 2026. The amendments are designed to extend the program until 2045, following the enactment of Senate Bill 840 and Assembly Bill 1207 in 2025, which aim to provide investment and regulatory certainty for clean energy and technology.

The Cap-and-Trade Regulation sets a declining limit on major sources of greenhouse gas emissions in California. It creates economic incentives for investment in cleaner technologies, aligning with the state’s climate goals.

The proposed amendments build on previous updates and are intended to ensure the program continues to offer a long-term price signal and appropriate incentives for deep decarbonization across the economy.

The California Air Resources Board will oversee the implementation and enforcement of these changes.

Sources :

California Air Resources Board, Notice of Public Hearing to Consider Proposed Amendments to the Regulation for the California Cap on Greenhouse Gas Emissions and Market-Based Compliance Mechanisms, (January 23, 2026)