California’s carbon-pricing program generated $36.2B for climate initiatives: report

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🗞️ Driving the news: California’s Cap-and-Invest carbon pricing program has generated $36.2 billion for climate-related investments since launching in 2013, according to a new report from the California Air Resources Board (CARB)
• The program has funded initiatives ranging from clean energy and emissions reductions to affordability and community resilience

🔭 The context: California’s carbon market places a cap on emissions from major polluters, including power plants and oil refineries, requiring companies to purchase permits for each tonne of CO₂ equivalent emitted
• The system covers around 80% of the state’s emissions and is designed to operate through 2045 as part of California’s wider climate strategy

🌍 Why it matters for the planet: Carbon pricing can create economic incentives for companies to reduce emissions while generating funding for climate solutions
• According to CARB, the program has contributed to reducing 130.5 million metric tonnes of CO₂ equivalent and has directed investments toward clean air, energy efficiency, and emissions reduction projects

⏭️ What’s next: California has reaffirmed its goal to adjust the program to support its goal of cutting emissions 40% below 1990 levels by 2030
• The state is set to monitor how investments reach disadvantaged communities, which have received a large share of deployed funding

💬 One quote: “Cap-and-Invest has been an important funding source for many of the state’s priorities.” — Lauren Sanchez, Chair, California Air Resources Board

📈 One stat: 76% of deployed Cap-and-Invest funding has targeted disadvantaged and low-income communities and households

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