California updates cap-and-trade program

The United States — California Air Resources Board>>> updated the rules of United States — California>>>'s cap-and-trade program, a key climate initiative designed to reduce greenhouse gas emissions. The changes, which reauthorize the program through 2045, include giving away up to $3.5 billion worth of allowances to companies, primarily manufacturers and oil refiners, if they build projects that reduce emissions. This move, intended to prevent businesses from leaving the state and address affordability concerns, has drawn significant protest from List of environmental organizations>>> who argue it weakens the program's effectiveness and reduces funding for climate change mitigation, affordable housing, and transportation projects. The Petroleum industry, while acknowledging some positive movement, still believes the program hinders efforts to lower energy costs. Gavin Newsom>>>'s administration has faced pressure to balance climate policies with economic affordability, especially after two oil refineries announced closures and federal challenges to United States — California>>>'s climate agenda, such as Donald Trump>>> blocking a ban on gas-powered cars. The updates are expected to halve annual revenues for the Greenhouse Gas Reduction Fund, impacting various community programs. The board has agreed to delay issuing allowances from the new incentive program for further review.