What you need to know: The California Air Resources Board released a new report showing the state’s Cap-and-Invest program has generated $36.2 billion for climate investments, $15.5 billion of which have been implemented through over 600,000 projects. With billions yet to be implemented and $8 billion in additional proceeds estimated through 2030, these funds are expected to continue reducing emissions and supporting jobs across the state for years to come. 

SACRAMENTO — The California Air Resources Board (CARB) today released the 2026 Annual Report to the Legislature on California Climate Investments (https://gcc02.safelinks.protection.outlook.com/?url=https%3A//ww2.arb.ca.gov/sites/default/files/auction-proceeds/cci_annual_report_2026.pdf&data=05%7C02%7CBradley.Branan%40arb.ca.gov%7C331c03d67eeb4648087808dedd2892ba%7C9de5aaee778840b1a438c0ccc98c87cc%7C0%7C0%7C639191363540051441%7CUnknown%7CTWFpbGZsb3d8eyJFbXB0eU1hcGkiOnRydWUsIlYiOiIwLjAuMDAwMCIsIlAiOiJXaW4zMiIsIkFOIjoiTWFpbCIsIldUIjoyfQ%3D%3D%7C0%7C%7C%7C&sdata=drMeg4ghVaMHLEvci14pvu%2BraTpvEnyalnhww51vguM%3D&reserved=0), detailing how the state’s Cap-and-Invest Program has generated billions of dollars to fight climate change and deliver on-the-ground benefits for communities across California. The money is an additional benefit of the program which is designed to reduce greenhouse gas emissions from the state’s largest polluters.   

Since 2014, these investments have reduced local pollution, made homes more affordable to heat and cool, improved transit options, increased access to affordable housing, expanded job training, and strengthened resilience to climate-driven hazards.  Some highlights: 

• $36.2 billion generated by Cap-and-Invest auctions 

• $15.5 billion implemented across 122 programs into over 600,000 projects delivering cleaner air, stronger communities, and more affordable options for Californians. Of that money, $11.4 billion, or 76%, is benefiting disadvantaged and low-income communities 

• 130.5 million metric tons of carbon-dioxide equivalent of estimated greenhouse gas reductions over project lifetimes, equivalent to avoiding the consumption of over 12.6 billion gallons of gasoline 

• 16,386 affordable homes under contract, helping address California’s housing needs 

• $44.4 billion in expected cost savings from reduced fuel use, lower transportation costs, and lower household energy bills 

• 143,000+ jobs supported across the economy through project spending, supply chain activity, and induced economic activity over project lifetimes 

“For over a decade Cap-and-Invest has been an important funding source for many of the state’s priorities. This landmark policy is responsible for reducing the state’s largest sources of emissions and directing billions of dollars into communities that suffer most from environmental harm,” said CARB Chair Lauren Sanchez. “Community leaders are indispensable partners in this effort, and we are proud to support their work. They remind us that a brighter, more sustainable future is not only possible — it is already taking shape." 

“The billions we’ve moved through our climate investments represent more than dollars. They represent improved safety and resilience for Californians, cleaner air, and economic opportunity,” said Yana Garcia, California Secretary for Environmental Protection  

How it works 

Cap-and-Invest (formerly Cap-and-Trade) places a firm, declining limit on major sources of greenhouse gas emissions and creates a powerful economic incentive for polluters to invest in cleaner, more efficient technologies and energy. Large emitters must obtain allowances for each ton of emissions they produce.  

The sale of allowances at auction generates proceeds, which is deposited into the Greenhouse Gas Reduction Fund. From there, the Legislature appropriates funding to California Climate Investments programs which state agencies design and administer to produce climate, health, economic, and environmental benefits statewide.  

Updating the Cap-and-Invest Program 

In May, the Board adopted updates (https://ww2.arb.ca.gov/news/carb-adopts-updates-californias-cap-and-invest-program-support-affordability-and-align-climate) to the state’s Cap-and-Invest Program (https://ww2.arb.ca.gov/our-work/programs/cap-and-invest-program). The adopted changes maintain California’s path toward meeting its 2030 and 2045 climate targets while supporting affordability for Californians by managing costs and maintaining a clear long-term signal for clean energy investment in the state.  

The changes are estimated to provide $10 billion in direct relief to electricity customers through bill credits and generate an estimated $8 billion for the Greenhouse Gas Reduction Fund through 2030.  

As part of the final resolution, the Board directed the Executive Officer, working with the Governor’s Office and Department of Finance, to communicate the importance of stable funding for AB 617 community air protection efforts, transit and affordable housing programs, all of which are focused on reducing emissions, and to encourage funding in the state budget.  

About California Climate Investments 

California Climate Investments uses Cap-and-Invest auction proceeds to fund projects that reduce harmful emissions, protect public health, strengthen local economies, and support natural environments. With a strong focus on communities most impacted by pollution and limited access to resources, California Climate Investments helps build a more equitable, sustainable future—where all Californians can share in the benefits of climate action.