The United States sued on Wednesday (October 24) the state of California over its cap and trade emissions agreement with Quebec in Canada, arguing that only the federal government has competence to enter into or endorse agreements with foreign states or countries.
The lawsuit contends that international pacts such as California’s cap-and-trade program can be agreed to by the federal government, reported the Wall Street Journal.
The US filed a civil complaint against the state of California, several of its officers, the California Air Resources Board, and the Western Climate Initiative, the Department of Justice said.
“The state of California has veered outside of its proper constitutional lane to enter into an international emissions agreement. The power to enter into such agreements is reserved to the federal government, which must be able to speak with one voice in the area of US foreign policy,” said Assistant Attorney General Jeffrey Bossert Clark of the Justice Department’s Environment and Natural Resources Division.
“California’s unlawful cap-and-trade agreement with Quebec undermines the President’s ability to negotiate competitive agreements with other nations, as the President sees fit,” Clark added.
The Trump Administration argues in its complaint that California entered into an integrated cap-and-trade program with Quebec in 2013 without approval from Congress. The complaint, filed in the Eastern District of California, asks the court to declare California’s emissions trade deal unconstitutional and to stop its operation.
In 2013, California and Quebec integrated their cap-and-trade programs, creating an emissions trade market as they were seeking “cost-effective approaches to cut greenhouse gas emissions.”
The lawsuit filed by the US against California is the latest in a series of clashes between the Trump Administration and the state of California in environment-related matters in recent months and years.
Full Content:
Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.
Featured News
University of Kentucky Eyes Structural Shift Amid Antitrust Pressures
Apr 24, 2025 by
CPI
Opt-Out Flops Out At WIPO Meeting on AI and IP
Apr 24, 2025 by
CPI
Belgian Watchdog Fines Pharma Giants Over Anti-Competitive Practices in Pharmacies
Apr 24, 2025 by
CPI
X Sues Minnesota Over Law Banning AI Deepfakes in Elections
Apr 24, 2025 by
CPI
Twelve States Sue Trump Over Tariff Policy, Citing Overreach of Executive Power
Apr 24, 2025 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Mergers in Digital Markets
Apr 21, 2025 by
CPI
Catching a Killer? Six “Genetic Markers” to Assess Nascent Competitor Acquisitions
Apr 21, 2025 by
John Taladay & Christine Ryu-Naya
Digital Decoded: Is There More Scope for Digital Mergers In 2025?
Apr 21, 2025 by
Colin Raftery, Michele Davis, Sarah Jensen & Martin Dickson
AI In the Mix – An Ever-Evolving Approach to Jurisdiction Over Digital Mergers in Europe
Apr 21, 2025 by
Ingrid Vandenborre & Ketevan Zukakishvili
Antitrust Enforcement Errors Due to a Failure to Understand Organizational Capabilities and Dynamic Competition
Apr 21, 2025 by
Magdalena Kuyterink & David J. Teece