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Cap-and-trade programs have grown in political popularity over the past few decades, primarily as a means of addressing climate change and mitigating greenhouse gas emissions. The idea behind these programs is that the government sets a certain cap for emissions that businesses or entities are not allowed to exceed. These businesses or entities receive permits allowing them to pollute up to this capped level. If the business or individual does not use all their allotted permits, they are able to sell their extra to others who might need extra because they exceeded their cap. Although these programs have increased in popularity, current cap-and-trade systems do not adequately integrate the general public into their system. Private forest owners should receive their appropriate share of the proceeds from the sale of cap-and-trade allowances in California’s cap-and-trade program. This would encourage conservation efforts by rewarding forests’ carbon capture ability. This Note will begin by discussing the need for a feasible solution to the greenhouse gas problem through the lens of a law and economics proposal called cap-and- trade. Next, this Note will look specifically at California’s cap-and-trade program, which is the most comprehensive in the nation to date. This Note will also discuss the Regional Greenhouse Gas Initiative (“RGGI”) to show how California is not alone in these efforts, as well as to show how California might alter its program to model the RGGI more closely, providing a more localized solution to global problems. The Note will then discuss the notion that our most effective carbon capture tool is nature itself, and how forested areas play such a vital role in that process. This Note will argue that California’s cap-and-trade program should incorporate private forest owners into the program by giving them the proceeds from the sale of allowances based on the estimated amount of carbon their land removes. Finally, this Note will discuss how such a program may serve as a building block for future carbon capture innovation and may help move the needle on national efforts to implement a similar cap-and-trade program that invites private individuals to participate.