{"id":23311,"date":"2023-06-30T14:53:06","date_gmt":"2023-06-30T19:53:06","guid":{"rendered":"https:\/\/blogs.edf.org\/climate411\/?p=23311"},"modified":"2025-12-03T11:04:48","modified_gmt":"2025-12-03T16:04:48","slug":"what-washington-state-can-learn-from-californias-decade-of-climate-investments","status":"publish","type":"post","link":"https:\/\/blogs.edf.org\/climate411\/2023\/06\/30\/what-washington-state-can-learn-from-californias-decade-of-climate-investments\/","title":{"rendered":"What Washington state can learn from California’s decade of climate investments"},"content":{"rendered":"

This blog was authored by Delia Novak, Western States Climate Policy Intern, U.S. Region.<\/em><\/p>\n

Since the launch<\/a> of Washington\u2019s cap-and-invest program in January, the state has raised over $850 million in revenue through two consecutive, sold-out auctions under the program. These cap-and-invest auctions provide critical funding for the clean energy and climate resilience projects that will lock in a swift transition to a healthier, safer climate future \u2014 with at least 35% of funding used to benefit communities that are overburdened by air pollution and who will be impacted first and worst by the climate crisis if we fail to act.<\/p>\n

Last month, Governor Inslee signed Washington\u2019s final budget for 2023-2025, which will make use of a whopping $2 billion in funding from the Climate Commitment Act (CCA)<\/a>, with highlights including<\/a> $138 million for electric vehicle charging infrastructure, $123 million for solar and storage projects, $120 million for zero emission medium and heavy-duty vehicles, and $163 million for home electrification rebates. By making decarbonization more affordable and slashing climate-warming emissions, this funding is already an impressive indication of the opportunities and investment that the cap-and-invest proceeds will deliver to communities across Washington.<\/p>\n

But Washington\u2019s climate investments are just getting started. In the meantime, we can look to California\u2019s decade of climate investments to understand the important benefits that Washington\u2019s cap-and-invest program can provide for its communities.<\/p>\n

<\/p>\n

A decade of investments in California<\/h3>\n

While Washington is just beginning to realize the revenue benefits from its new cap-and-invest program, California is also at a milestone: 2023 marks a decade since the launch of the Golden State\u2019s cap-and-trade program. The use of revenue in California to invest in vulnerable communities, finance further decarbonization, and spur climate innovation shows the promising future for similar investments in Washington.<\/p>\n

To date, the California program has raised a formidable $9.3 billion<\/a> in funding for California Climate Investments programs that improve the state\u2019s economy, environment, and public health. 73% of that revenue<\/a> has been implemented in programs that directly benefit disadvantaged priority populations by improving air quality, providing employment opportunities and increasing access to sustainable transportation. Additionally, those investments are expected to provide a critical reduction of 97.1 million metric tons<\/a> of carbon dioxide equivalent in greenhouse gas emissions \u2014 comparable to cutting a years-worth of emissions from 26 coal-fired power plants.<\/p>\n

Examples from California<\/h3>\n

As a refresher, cap-and-invest programs<\/a> like Washington\u2019s and California\u2019s reduce pollution by setting a binding, declining limit on emissions across an economy. As that limit declines, businesses regulated under the program must either reduce their pollution or pay for it by purchasing a limited number of emissions allowances in state auctions. The revenue from those auctions is then invested into programs and projects that will cut climate pollution, build climate resilience and improve air quality \u2014 prioritizing the vulnerable communities who experience the greatest impacts.<\/p>\n

California’s success bodes well for the future of Washington\u2019s nascent cap-and-invest system. Here are a few exciting examples of how California has chosen to spend its carbon pricing revenue that could be of interest to ecosystems, cities, neighborhoods and businesses across Washington:<\/p>\n

    \n
  1. Electrifying transportation<\/strong>: In the transportation sector, hundreds of millions of dollars in funding have contributed to efforts to decarbonize transit infrastructure and increase mobility for low-income and rural communities. Some projects include:\n