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

Despite repeated efforts to downplay the price tag, the reality of California's climate agenda is becoming impossible to ignore. Voters are focused on the cost-of-living crisis, and with good reason. California's climate ambition doesn't exist in a vacuum, it shows up in the form of layered regulations, high taxes, stringent mandates and rising compliance costs. From the Cap & Invest program to aggressive emissions targets, to electrification requirements and permitting delays, each policy adds another cost driver. There is a reason why California is one of the most expensive places to live and raise a family.  

Voters are noticing and political leaders are starting to recalibrate accordingly. Governor Gavin Newsom recently scaled back his own executive order to reduce GHG emissions by 48% back to the original plan of 40% by 2030. However, even the 40% goal is likely out of reach and will be extremely costly in its own right. Democratic New York Governor Hochul is wisely doing the same climate program affordability soul searching as her reelection looms and economic pressures mount. 

The high cost of California's climate ambition affects everything.

Higher fuel standards increase transportation costs.  

Energy mandates drive up electricity and natural gas prices.  

Water and environmental regulations raise the cost of farming and food processing.  

Building codes and other mandates inflate housing and infrastructure costs.  

At every step, businesses face higher compliance burdens, and much of these costs are ultimately passed on to consumers. 

California's climate leadership has value, but not when it comes at the expense of affordability and competitiveness. When policies become too costly, businesses relocate, jobs disappear and investment follows to more affordable jurisdictions. 

California, despite being the world's fourth largest economy, accounts for only 1% of global emissions. Policymakers pushing new ever-higher levels of climate ambition risk devastating the very economic foundation that supports millions of residents without meaningfully changing the global climate trajectory.