California Climate Investments puts billions of dollars of Cap-and-Trade auction proceeds to work reducing greenhouse gas emissions, strengthening the economy, improving public health and the environment, and providing meaningful benefits to the most disadvantaged communities and low-income communities and households.
How California Climate Investments is Funded
.California Climate Investments is funded by proceeds from the sale of state‑owned allowances from quarterly Cap‑and‑Trade auctions that are deposited into the Greenhouse Gas Reduction Fund (GGRF). On a yearly basis, the Legislature distributes the money from the GGRF to programs administered by different State agencies. Any program that is paid for using money from the GGRF is a California Climate Investments program.
Once State agencies receive funds, they conduct a variety of tasks such as engaging communities, determining the type of projects to fund, releasing and reviewing project proposals, and carefully selecting recipients. Awarded recipients then implement projects based on criteria and timelines developed by the State agency.
How California Climate Investments Flow to Communities
To provide a clear and consistent approach for tracking and reporting funds, California Climate Investments reach communities through the steps outlined in Figure 1. Figure 1 shows working definitions for terms used to report outcomes from California Climate Investments and the amount of funding by status, progressing from when funds are initially appropriated by the Legislature through the implemented stage. As of July 2023, the sale of state‑owned allowances through Cap‑and‑Trade auctions have generated $24.3 billion for the GGRF. The Legislature appropriated $4.1 billion to administering agencies for Fiscal Year 2022‑23, bringing the cumulative total of appropriations to $23.7 billion. View detailed information on the agencies and programs that received money from the GGRF.
California Climate Investments projects implemented $511 million from December 2022 through the end of May 2023. This brings the implemented total to nearly $9.8 billion. View Reports and Data to learn more about yearly and cumulative investments.
How California Climate Investments Benefit Californians
The portfolio of California Climate Investments programs is designed to facilitate greenhouse gas emissions reductions while providing environmental, economic, and public health benefits. From affordable housing to clean transportation, urban greening to sustainable agriculture, waste diversion to technical assistance, and more, the diversity of program types reflects the many sector approaches needed to effectively reduce greenhouse gas emissions and provide benefits to Californians across the state.
Learn More About Programs and Projects
Program pages highlight available funding opportunities, share information about each program’s focus, and provide data that summarize implemented dollars, benefits to priority populations, jobs created, pollution reductions, and more.
The Project Map shows the location of California Climate Investments projects across the state and an overview of the benefits they provide.
Explore the Data Dashboard to learn about additional outcomes from program investments across the state, such as co-benefits and community events.
How California Climate Investments Benefit Priority Populations
Senate Bill 535 and Assembly Bill 1550 require that a minimum of 35% of California Climate Investments benefit priority populations, which include disadvantaged communities and low‑income communities and households. Programs provide a variety of benefits to priority populations, including cleaner air, increased mobility options, greener communities, expanded access to clean energy, and new employment opportunities. In total, 74%, or $7.2 billion+, of implemented California Climate Investments project funding is benefiting priority populations, greatly exceeding the statutory requirement. Learn more about Priority Populations.
Learn More
The Annual Report to the Legislature on California Climate Investments Using Cap‑and‑Trade Auction Proceeds is a key resource for tracking progress on the status and outcomes of California Climate Investments. This report provides cumulative and annual outcomes including fiscal information, estimates of greenhouse gas emissions reductions and co-benefits from project investments, statistics on benefits to priority populations, program accomplishments, and more. Throughout the report, project highlights demonstrate how these funds are improving lives across the state. The appendices provide summary statistics, budgetary expenditures, and data on leveraged funds and competitive proposals.