California extends cap-and-trade program as tribes weigh tradeoffs
California lawmakers have extended the state's cap-and-trade program through 2045, aiming to curb greenhouse gas emissions. The decision comes as Indigenous nations, who steward significant forest lands, navigate the benefits and challenges of carbon offset projects tied to the program. Tribal leaders emphasize the need for Indigenous rights to guide these climate initiatives.
California's cap-and-trade program, launched in 2013, sets a declining cap on greenhouse gas emissions from major sources like power plants, industrial facilities, and fuel distributors, covering about 85 percent of the state's total emissions. Companies that exceed their allowances must purchase credits, either from the state or through offset projects such as forest conservation. The program has generated more than $7 billion, funding initiatives like clean transportation and wildfire prevention.
In 2022, as part of a state budget bill, lawmakers extended the program until at least 2045, ensuring its role in meeting California's climate goals. This extension builds on the program's initial 10-year authorization and includes measures to link it with Quebec's system for broader emissions trading.
Indigenous nations in California manage roughly 20 percent of the state's forests, making them key players in offset projects that preserve carbon-storing woodlands. Tribes like the Yurok have partnered on such initiatives, using revenue to support conservation and community needs. However, these projects raise complex tradeoffs for tribal sovereignty and land rights.
“We’re not against carbon markets, but we want to make sure that Indigenous rights and Indigenous knowledge are centered in these conversations,” said Frankie Orona, vice chair of the Big Pine Paiute Tribe. Orona highlighted concerns that offsets might not deliver genuine emission reductions and could prioritize corporate interests over tribal priorities.
In March 2023, the California Air Resources Board approved updated protocols for offset projects, including stricter verification for forest-based credits. These rules aim to address criticisms that some offsets overstate benefits. Tribal advocates, through groups like the Indigenous Environmental Network, continue to push for greater involvement in policy design, arguing that Indigenous-led stewardship offers the most effective path to climate resilience.
The extension underscores California's aggressive climate strategy, but it also spotlights ongoing tensions between market-based solutions and equitable environmental justice. As offset projects expand, Indigenous nations seek assurances that their voices shape the program's future.