The California Cap-and-Trade Program is a market-based approach designed to reduce greenhouse gas emissions. It sets a limit, or "cap," on the total amount of emissions allowed from regulated industries. Companies must hold permits for their emissions, and they can buy or sell these permits, creating a financial incentive to lower their emissions. The program covers major sources of emissions, including power plants and industrial facilities. By encouraging businesses to invest in cleaner technologies, the program aims to help California meet its climate goals while promoting economic growth and innovation in the clean energy sector.