California Cap-and-Trade Program

The California Cap-and-Trade Program is an environmental policy aimed at reducing greenhouse gas emissions. It sets a limit (or cap) on the total amount of emissions allowed from certain industries. Companies receive or buy permits that let them emit a specific amount of greenhouse gases. If they emit less, they can sell their extra permits to other companies that exceed their limits. This creates a financial incentive for businesses to reduce emissions. The goal is to lower overall pollution while encouraging innovation and investment in clean technologies, ultimately helping to combat climate change.