INSIGHTSSERIES
Environmental Markets | Emissions
September 29, 2025
California Advances Ambitious Energy and Climate Initiatives
From extending the landmark cap-and-trade program to updating energy efficiency goals, new policies are shaping the state’s approach to energy and climate.
California is advancing a series of energy and climate policies, reflecting the state’s commitment to reducing greenhouse gas emissions, improving energy efficiency, and…Read the full report
Key Takeaways
- California has enacted a package of bills, including extending the landmark cap-and-trade program through 2045 and a measure allowing for independent governance of Western electricity markets.
- Recently launched regulatory proceedings include rulemaking to refine interconnection policies for distributed energy resources and address oversight of electric integrated resource planning and procurement processes.
- State regulators have adopted new 2026-2037 energy efficiency targets for investor-owned utilities, with a forecasted Total System Benefit of approximately $589 million in 2026.
