California Reports Nearly $33 Billion in Cap-and-Trade Investments Toward Climate Projects
Photo Credit: California Governor’s Office
SACRAMENTO, May 7, 2025 (CALIFORNIA NEWS TODAY) — The California Air Resources Board has released a new report showing that nearly $33 billion has been raised through the state’s cap-and-trade program to fund climate-related projects and consumer benefits, according to the Office of Governor Gavin Newsom.
The annual California Climate Investments report details the distribution of cap-and-trade funds across 117 programs focused on reducing greenhouse gas emissions, improving public health, and supporting economically and environmentally burdened communities.
In 2024, $1.9 billion in new funding was used to support nearly 12,000 projects, with $1.2 billion directly allocated to community and household initiatives. Since the program began in 2013, more than $18 billion has been awarded, with almost $13 billion already funding more than 500,000 projects either completed or underway.
According to the state, these funded efforts are expected to reduce emissions equivalent to taking over 80% of California’s gasoline-powered cars off the road for one year. Specific examples of investments include tribal land stewardship and wildfire prevention on the North Coast and job training for zero-emission vehicle careers in Fresno.
The cap-and-trade program has also returned $15 billion in utility bill credits to California customers and incentivized cleaner technologies across industrial sectors.
“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. And we’ve got the receipts: healthier and cleaner communities and thousands of good paying jobs,” said Governor Gavin Newsom.
“California is proud of how we’ve invested billions of cap-and-trade dollars across the state over the last decade. From individual incentives for cleaner cars and water-efficient appliances, to forest health programs that help safeguard communities from wildfire, these programs provide benefits to all Californians. In addition, cap-and-trade has also delivered $15 billion in bill credits back to utility customers. It’s climate policy that pays,” said Liane Randolph, Chair of the California Air Resources Board.
Looking ahead, the Newsom administration, along with Senate President pro Tempore Mike McGuire and Assembly Speaker Robert Rivas, has announced plans to seek an extension of the cap-and-trade program beyond its current expiration in 2030. The proposal aims to provide market certainty and support California’s goal of reaching net-zero carbon emissions by 2045.
The cap-and-trade program applies to California’s largest polluters, placing a limit on emissions while allowing companies to either reduce their emissions or purchase allowances. Proceeds from these purchases fund the state’s climate investments.
For more information, visit www.gov.ca.gov.
Source: Office of Governor Gavin Newsom
