The California legislature recently passed a series of bills, signed into law by Governor Gavin Newsom on 16 September, that should have meaningful effects on environmental policies and the green energy transition. The highlight of the bills is a goal of carbon neutrality by 2045. While this legislative package is meaningful for many industries, we focus this note on the impact to the state’s carbon cap-and-trade program. Although the bills have positives and negatives for the value of California carbon allowances (CCAs), we view the likely alignment of the cap-and-trade program with the 2045 goal to be positive for ... (full story)