New York’s forthcoming Cap-and-Invest program provides a critical opportunity: to cost effectively reduce greenhouse gas emissions and help meet the State’s goal of reducing emissions by 85 percent by 2050. But State leaders face an important, high-stakes challenge in designing the program: how to drive down emissions without driving away jobs and investment or driving up consumer costs. 

Based on a close examination of similar programs, CBC’s latest report, Keys to a Cap-and-Invest Design That’s Earth- and Economy-Focused, finds that poor design and implementation of the program could very well lead to businesses simply shifting emissions—and economic activity—from New York to other states, with dually damaging consequences: failing to reduce emissions overall and harming New York’s economy and job growth. 

Capping emissions and creating a market wherein companies can purchase or trade the right to generate limited emissions has been used around the globe. New York State is currently designing its program. 

In Keys to a Cap-and-Invest Design That’s Earth- and Economy-Focused, CBC presents specific program goals and design parameters to inform the design process and the public’s ability to evaluate the program when proposed. CBC offers seven concrete recommendations to help the State create a program that maximizes emission reduction and minimizes the financial cost to businesses, households, and the economy.