The California Manufacturers & Technology Association (CMTA) has voiced strong opposition to advancing a cap-and-trade deal in the final days of the current legislative session. The association represents the interests of California’s manufacturing sector, which includes 34,000 manufacturers statewide.
Lance Hastings, President and CEO of CMTA, stated: “California’s 34,000 manufacturers work hard to keep goods affordable, but poorly crafted policies drive up costs and make families pay more. 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 considered a key part of California’s climate policy framework. The program affects energy prices, the cost of goods and services, and economic competitiveness in the state. It also generates funding for climate-related investments while offering mechanisms for reducing emissions at lower costs.
Manufacturers have participated in and contributed financially to the cap-and-trade program for nearly two decades. According to CMTA, with less than a week remaining before the end of the legislative session, no bill language related to reauthorizing or amending cap-and-trade has been made public.
The association highlighted three primary concerns regarding any last-minute changes:
– Lack of transparency: They argue that making significant changes without public input undermines trust in the process.
– Affordability risks: CMTA notes that proposed draft concepts could raise allowance prices and restrict offsets, leading to higher compliance costs and increased consumer prices.
– Competitiveness and jobs: The group warns that hasty or expensive deals may push manufacturing jobs and investment out of California.
Hastings added: “The current program is working. 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 set to run until 2030, CMTA maintains there is no urgent need for new legislation this year. They believe postponing any decision until next year would allow more time for industry involvement in developing effective policy.
“No bill is better than a bad bill,” concluded Hastings.
CMTA represents an industry producing $300 billion annually—about 10 percent of California’s total economic output—and employing 1.3 million people at wages significantly above other non-farm employers.
For further information, contact Nina Fisher, Vice President of Communications at CMTA.
