News & Insights

Sacramento, Calif. (September 8, 2025) – The California Manufacturers & Technology Association (CMTA) announced today that the state’s manufacturing sector is in strong opposition to any attempt to advance a cap-and-trade deal in the final days of the legislative session.

“California’s 34,000 manufacturers work hard to keep goods affordable, but poorly crafted policies drive up costs and make families pay more,” warned Lance Hastings, President & CEO of CMTA. “There’s no rush on cap-and-trade this year. Waiting will allow for a transparent process that leads to better outcomes for all Californians.”

Cap-and-trade is one of California’s most consequential climate policies, particularly for the state’s manufacturing industry. It directly impacts energy prices, the cost of goods and services, and the state’s economic competitiveness. The program also generates billions in funding for climate investments while providing a pathway for affordable emissions reductions.

For nearly 20 years, manufacturers have participated in and paid into California’s cap-and-trade program. They have a direct stake in any reauthorization, and CMTA continues to advocate for their voices to be heard. Yet with less than a week before the end of session, no bill language has been made public.

CMTA outlined three key concerns:

• Lack of transparency: Rewriting the backbone of California’s climate policy behind closed doors and outside the regular committee process undermines public trust and risks program durability.

• Affordability risks: Draft concepts point to higher allowance prices, restricted offsets, and weakened industrial protections, all of which would drive up compliance costs and ultimately raise prices for California families.

• Competitiveness and jobs: A rushed, costly deal would accelerate the loss of manufacturing jobs and investment to other states, undercutting California’s economy while doing little for global emissions.

“The current program is working,” Hastings said. “Any reauthorization of cap-and-trade must be workable and durable. That will take time to craft. A last-minute deal would only destabilize the program, harm families, and drive jobs out of California. Manufacturers are calling for lawmakers to slow down and get this right.”

With the current cap-and-trade program not expiring until 2030, there is no urgency to pass cap-and-trade this year. Delaying until next year allows time for a transparent, thoughtful process that includes manufacturers and other industry leaders, resulting in better policy for all Californians.

“No bill is better than a bad bill,” concluded Hastings.

For inquiries, please contact CMTA Vice President of Communications, Nina Fisher, at nfisher@cmta.net.

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About CMTA
The California Manufacturers & Technology Association (CMTA) has advocated for pro-growth laws and regulations before the California legislature and administrative agencies since 1918. The total output from manufacturing in California is $300 billion per year, roughly 10 percent of the total economic output of the state. Manufacturers employ 1.3 million Californians paying wages more than $25,000 higher than other non-farm employers in the state.