The California Manufacturers & Technology Association (CMTA) has expressed strong opposition to any efforts to advance a cap-and-trade deal in the final days of the current legislative session. The organization represents 34,000 manufacturers across the state and argues that last-minute changes to climate policy could negatively affect both businesses and consumers.
“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 key component of California’s approach to addressing climate change. The program influences energy prices, the cost of goods and services, and impacts economic competitiveness in the state. It also generates significant funding for climate initiatives while providing a mechanism for reducing emissions at lower costs.
Manufacturers have participated in California’s cap-and-trade program for nearly two decades, contributing financially and having a direct interest in its future structure. Despite this involvement, CMTA notes that with less than a week remaining in the legislative session, no public bill language has been released regarding potential reauthorization or changes.
CMTA outlined three main concerns about the current process:
Lack of transparency: The association says rewriting major climate policy without open discussion or following standard committee procedures could erode public trust and threaten the stability of the program.
Affordability risks: According to CMTA, proposed changes may lead to higher allowance prices, fewer offset options, and reduced protections for industry—all factors that could increase compliance costs and ultimately raise consumer prices.
Competitiveness and jobs: The group warns that moving forward with an expensive or rushed deal could result in manufacturing jobs leaving California for other states without significantly affecting global emissions levels.
“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 existing cap-and-trade framework remains active until 2030. CMTA argues there is sufficient time available to develop new legislation through an open process involving manufacturers and other stakeholders before any decisions are finalized.
“No bill is better than a bad bill,” Hastings concluded.
CMTA has represented manufacturing interests before lawmakers since 1918. Manufacturing contributes $300 billion annually—about 10 percent—to California’s economy, employing approximately 1.3 million people who earn wages significantly higher than those in other non-farm sectors.
For further information about CMTA’s position or related inquiries, contact Nina Fisher at nfisher@cmta.net.
