The California Manufacturers & Technology Association (CMTA) has voiced strong opposition to any efforts to move forward with a cap-and-trade agreement in the final days of the legislative session. The association, which represents 34,000 manufacturers across the state, raised concerns about transparency and potential economic impacts.
“California’s 34,000 manufacturers work hard to keep goods affordable, but poorly crafted policies drive up costs and make families pay more,” said 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 a major component of California’s climate policy. It affects energy prices, manufacturing costs, and the overall competitiveness of the state’s economy. The program also generates significant funding for climate-related investments while aiming to provide cost-effective emissions reductions.
Manufacturers have been involved in California’s cap-and-trade program for nearly two decades and contribute financially to its operation. According to CMTA, they have a direct interest in how any reauthorization is structured. Despite this involvement, CMTA noted that less than a week before the end of the legislative session, no public bill language had been released.
The association highlighted three main issues:
– Lack of transparency: CMTA criticized efforts to change climate policy without open discussion or adherence to standard committee procedures.
– Affordability risks: The group warned that proposed changes could increase compliance costs through higher allowance prices and fewer industrial protections.
– Competitiveness and jobs: CMTA expressed concern that an expedited deal could lead to job losses and investment moving out of state.
“The current program is working,” Hastings stated. “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.”
The current cap-and-trade framework does not expire until 2030. CMTA argued there is sufficient time for lawmakers to consider changes through a more open process involving industry leaders.
“No bill is better than a bad bill,” concluded Hastings.
CMTA represents an industry responsible for $300 billion in annual output—about 10 percent of California’s total economic activity—and employs 1.3 million people statewide with wages notably higher than other non-farm sectors.
For further information, inquiries can be directed to Nina Fisher, Vice President of Communications at CMTA.
