At the end of its legislative session, the California legislature passed AB 1207 and SB 840 to extend and introduce new measures for California’s greenhouse gas (GHG) emissions Cap-and-Trade program, which has now been renamed “Cap-and-Invest.” Extension of the Cap-and-Invest program through 2045 may increase regulatory certainty for market participants while aligning the program with the state’s overall emission goals. The governor signed these bills on Sept. 19, 2025 as part of a package of California energy bills.
California’s Cap-and-Trade Is Extended and Becomes ‘Cap-and-Invest’ in Package of New Energy Laws
