Climate Policies Come With A Cost!
BREAKING NEWS …
California’s climate policies come with a significant and rising cost!
California has long led the nation in climate action and the cost of that leadership is now being realized, especially by those who can least afford it.
Already exorbitant and rising energy costs
Highest in the nation gasoline and diesel prices
Not that this should be a surprise to Sacramento lawmakers. But many have been slow to accept that reality even as they vote to keep expanding climate policies. Others simply continue to ignore it.
“When you spend two-thirds of your income on rent, crawl through gridlock and still face spiking utility bills, climate action stops feeling like an investment in the future and starts feeling like a tax on the present.”
— Tom Steyer, Sacramento Bee June 25, 2025
As rising energy and fuel costs ripple through the economy it translates into higher costs and economic impacts all around.
Higher housing and construction costs
Higher food and grocery costs
Higher water costs
Higher rates of poverty
Higher rates of unemployment
2.3 million customers in arrears on their utility bills
Cost-of-living impacts of California’s climate policies are felt by residents everyday. Take California’s Cap & Invest – formerly Cap & Trade program – for example. Basically all consumer goods and services are impacted in some way by the program due to its impact on fuel and energy costs. As regulators at the California Air Resources Board consider new rules that will shape the future of the state’s carbon market, the financial implications for businesses and residents remain a central concern.
Many industries — including fuel producers, energy providers, agriculture, and manufacturing — view the proposed updates as too ambitious and increasing costs even further. When program ambition increases and emissions allowances become more limited, the price of meeting regulatory requirements rises, and those higher costs are often reflected in what Californians pay for basic necessities. Some environmental advocates are calling for even tighter limits on allowances, a move that could push costs higher still. While regulators emphasize the environmental goals of these policies, the economic trade-offs are increasingly visible to residents already coping with one of the nation’s highest costs of living.
When you add in other costly environmental and business compliance costs in the state it should be no surprise that refineries, food processors and other businesses are closing in California, costing thousands of jobs and harming local economies and communities in their wake.