California Governor Gavin Newsom (Photo: USA TODAY)
Sacramento, California – According to a new report from the California Air Resources Board (CARB), California Governor Gavin Newsom announced that nearly $33 billion has been raised from polluters to fund climate solutions through the state’s cap-and-trade program, according to a new report from the California Air Resources Board (CARB). The annual report details how this funding, distributed through California Climate Investments (CCI), supports 117 climate programs statewide. These investments aim to reduce greenhouse gas emissions, strengthen the economy, and improve public health, particularly in communities historically facing higher environmental and economic burdens.
In 2024 alone, $1.9 billion went to nearly 12,000 new projects, with $1.2 billion directly benefiting local communities and households. Since the program’s inception 11 years ago, over half a million projects have received over $18 billion in funding. These investments are expected to eliminate emissions equivalent to removing more than 80% of California’s gas-powered vehicles from the road for a year.
Governor Newsom emphasized the dual benefits of the program, stating, “California is proving that cutting pollution creates jobs and boosts communities. By holding polluters accountable, we’re sending billions of dollars back to communities and back to people’s wallets through credits on utility bills.” The program has already delivered $15 billion in bill credits to utility customers, alongside investments in projects like tribal land stewardship in the North Coast and workforce development for zero-emission vehicle careers in Fresno.
CARB Chair Liane Randolph highlighted the broad benefits of the cap-and-trade program, noting its support for initiatives ranging from cleaner transportation to wildfire resilience. “These programs provide benefits to all Californians,” she said. “It’s climate policy that pays.”
Looking ahead, Governor Newsom, Senate President pro Tempore Mike McGuire and Assembly Speaker Robert Rivas, announced plans to pursue an extension of the cap-and-trade program beyond its current 2030 sunset. The extension is critical to ensuring California stays on track to meet its ambitious goal of net-zero carbon pollution by 2045.
Under the cap-and-trade system, a declining limit is placed on primary sources of carbon pollution, including factories and energy suppliers. Companies can either invest in cleaner technologies or purchase allowances, with funds reinvested in climate initiatives. Since 2000, California has reduced greenhouse gas emissions by 20% while growing its GDP by 78%, underscoring the success of its climate leadership strategy.
