Revolutionary government program raises $28 billion, and millions of one state's residents are benefiting: 'A win for ordinary people'
California created a cap-and-trade program, which set a limit on carbon emissions that was to decline every year until the end of the contract in 2030. It also required companies to purchase permits or "allowances" to cover their carbon emissions. Companies that needed to go over their allowance could trade with other companies, but overall, the program created an economic incentive for companies to move forward with cleaner policies that reduced pollution.
The fees from these allowances were then distributed across multiple agencies, including the California Natural Resources Agency's Urban Greening Program. One of the most remarkable projects created with this funding was a living schoolyard in Oakland, made possible with a $1.2 million grant from the CNRA. What used to be an asphalt lot was turned into vegetable gardens, a pollinator garden, an outdoor classroom, grass fields, and 65 new trees.
Since 2012, this program has brought in $28 billion, $11.6 billion of which has already been translated into community projects. California residents are also now seeing an average of $137 in savings on their utility bills through the California Climate Credit.
This program is eligible to be renewed and extended until 2045. If California lawmakers choose to extend it, residents can expect to see $47 billion in revenue, $55 billion in economic growth for California, and an additional 287,000 jobs.
"California's cap-and-trade program hasn't just been a win for the climate; it's been a win for ordinary people who can see in their neighborhoods and on their utility bills that it's paying off. And there's billions more to come if we get this right," said Caroline Jones, a climate policy expert at the Environmental Defense Fund.
Whether it's investing in solar panels, food security, or bike lanes for crowded urban areas, it's been proven that the happiest people and countries in the world are the ones in areas of less pollution and with stronger community programs.
This program was spotlighted in the Environmental Defense Fund's Vital Signs newsletter, which is a stellar source for good-news stories, climate change solutions, and advice for taking action in your own community.
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