Governor Gavin Newsom announced that California has raised nearly $33 billion from its cap-and-trade program to fund climate initiatives across the state. The California Air Resources Board (CARB) published a report detailing these investments, which support 117 climate programs aimed at reducing greenhouse gas emissions, boosting the economy, and improving public health.
“California is proving that cutting pollution creates jobs and boosts communities,” Governor Newsom stated. He emphasized that the funds are being reinvested into communities through utility bill credits and job creation.
In 2024 alone, cap-and-trade investments financed nearly 12,000 new projects with $1.9 billion in funding, of which $1.2 billion directly benefited local communities and households. These efforts align with Governor Newsom’s agenda to accelerate infrastructure upgrades statewide.
Since its inception 11 years ago, the program has allocated over $18 billion in funding to more than half a million projects. The environmental impact is significant, with projected emission reductions equivalent to removing over 80% of California’s gas-powered cars from the road for one year.
Investments have included tribal land stewardship for wildfire resilience in the North Coast and workforce development for zero-emission vehicle careers in Fresno. The cap-and-trade initiative has also returned $15 billion in bill credits to utility customers while promoting industry investment in cleaner technologies.
CARB Chair Liane Randolph remarked, “California is proud of how we’ve invested billions of cap-and-trade dollars across the state over the last decade.” She highlighted benefits such as incentives for cleaner cars and water-efficient appliances.
To continue progress toward net-zero carbon pollution by 2045, Governor Newsom plans to extend the cap-and-trade program beyond its current expiration date of 2030. This extension would provide market stability and reinforce California’s commitment to achieving its climate goals.
Cap-and-trade works by setting a declining limit on major carbon polluters like factories and energy companies. This creates an economic incentive for these entities to adopt cleaner technologies or pay for their emissions.
California has made strides in reducing pollution while maintaining economic growth; greenhouse gas emissions have decreased by 20% since 2000 as GDP rose by 78%. The state also continues to break clean energy records, with significant increases in battery storage capacity since Governor Newsom took office.
