California extends cap-and-trade, as Indigenous nations grapple with the trade-offs

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🗞️ Driving the news: California Governor Gavin Newsom has extended the state’s landmark cap-and-trade program until 2045, securing one of the world’s largest carbon markets for two more decades
• The decision comes amid growing controversy over the participation of Indigenous nations — such as the Yurok Tribe, which has earned tens of millions of dollars through carbon offset sales — and renewed criticism that such markets allow polluters to “pay to pollute” while perpetuating systems of colonial control

🔭 The context: Launched in 2013, California’s cap-and-trade program enables companies to buy carbon credits to offset their emissions by investing in forest preservation or renewable energy projects
• The Yurok Tribe joined in 2014, managing over 7,600 acres of forest for carbon sequestration
• The resulting revenue has helped fund ecological restoration along the Klamath River following recent dam removals
• However, critics — including Indigenous and environmental justice advocates — argue that carbon markets often marginalize Indigenous sovereignty, enable resource exploitation, and allow corporations to avoid cutting emissions at the source

🌍 Why it matters for the planet: California’s extension reaffirms market-based climate policy at a time when global trust in carbon offsets is faltering
• Advocates say Indigenous-led projects can deliver both environmental and social benefits if they retain local control and cultural alignment
• Yet, as reports from Brazil and Kenya have shown, poorly regulated projects can displace communities and degrade traditional livelihoods
• The controversy underscores the urgent need for stronger international oversight to ensure that carbon markets respect both ecological integrity and Indigenous rights

⏭️ What's next:
With COP30 on the horizon, global negotiators are expected to debate new standards for carbon trading and community protections. Experts like economist Juan Robalino call for regulation to ensure “social integrity” in carbon markets—embedding human rights into carbon governance. Within the U.S., tribes such as the Yurok are pushing for higher carbon prices and stricter market entry requirements to prevent greenwashing. Meanwhile, Indigenous-led frameworks in British Columbia and Australia are emerging as models for community-based, culturally grounded conservation finance.

💬 One quote: “You have to have ownership of it. You have to have control of it… Don’t move away from your traditional values at whatever cost.” – Frankie Myers, former Vice Chairman, Yurok Tribe

📈 One stat: At least 13 Indigenous nations in the United States have developed carbon offset projects on California’s marketplace since the Yurok Tribe joined in 2014

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