Sen. Bennet Proposes Cap-and-Invest Strategy in Colorado Governor Bid

Colorado’s political landscape could soon witness a significant shift in its climate change tactics. If Sen. Michael Bennet emerges victorious in his gubernatorial race, he plans to champion a “cap-and-invest” program, a strategy that has yet to gain traction during Gov. Jared Polis’s tenure.

Bennet recently unveiled his climate policy proposal, which emphasizes a market-driven approach focusing on gradually reducing greenhouse gas emissions. This initiative aligns with Colorado’s existing climate objectives that aim for a net-zero contribution to global warming by 2050.

The proposed framework involves allocating a finite number of permits annually, authorizing companies to emit specified amounts of pollutants. The revenue garnered would potentially be reinvested to lower utility bills and advance clean energy technologies, as highlighted by Bennet’s campaign.

“I believe Colorado can be a leader in building a future that protects our environment, makes life more affordable for our families and supports our businesses,” Bennet remarked. “To do that, we need to move beyond the status quo and embrace new, proven and innovative strategies.”

A potential shift in Colorado’s climate strategy

Bennet’s platform suggests integrating climate policy into a broader affordability strategy, leveraging a cap-and-invest program to offer energy bill discounts. This comes as Colorado, along with other regions, braces for potentially rising energy expenses due to increased demands from AI data centers, electric buildings, and vehicles.

Companies like Xcel Energy are already transitioning to wind and solar power, which, while enhancing air quality and protecting consumers from fluctuating fossil fuel prices, may lead to frequent rate hikes over the coming years.

Governor Polis has previously resisted cap-and-invest models, favoring incentives, voluntary commitments, and tailored regulations. In 2021, he issued an executive order endorsing such strategies on a larger scale but opted for different approaches at the state level.

Polis’s administration has authorized a limited carbon trading initiative to curb emissions from major industrial sectors and has promoted the transition to clean energy with incentives like tax cuts for electric vehicles and heating systems.

“They’ve tried to keep it at arm’s length,” remarked Pam Kiely from the Environmental Defense Fund, highlighting the absence of a more robust cap-and-invest policy. “We think that’s been a missed opportunity.”

While Kiely expressed approval of Bennet’s stance, her organization has not officially supported any candidate in the gubernatorial race.

Supporting quotes from industry leaders, including those from a solar-powered Pueblo steel mill and the business manager for IBEW Local 68, were part of Bennet’s announcement. However, the Colorado Chamber of Commerce’s spokesperson, Cynthia Eveleth-Havens, indicated they need more time to assess the proposal before commenting.

An initial play for Colorado climate voters

Bennet is competing against Colorado Attorney General Phil Weiser for the Democratic nomination. Weiser’s climate agenda doesn’t explicitly advocate for cap-and-invest but emphasizes expanding investments in low-carbon energy sources.

Anna Huck, Weiser’s campaign manager, critiqued Bennet’s plan, citing unanswered questions and pointing to the senator’s support for Trump-era appointments, such as Energy Secretary Chris Wright. Wright, a former fossil fuel executive, has controversially argued that climate change doesn’t constitute a global crisis.

“Any plan to address our climate challenges does not justify his votes to confirm Trump cabinet picks like Doug Burgum, Chris Wright, Sean Duffy, and Brooke Rollins, who are now dismantling climate protections and threatening our public lands,” Huck stated.

Presently, only Washington and California employ statewide cap-and-invest systems. Meanwhile, New York is engaged in a legal battle over a similar policy initially approved in 2019.

In Washington, the approach has resonated with voters, who in 2024 decisively rejected an initiative to abolish it by a notable margin.