The Affordable Future Is Climate-Smart
California Can Lead on Climate While Balancing Affordability
Affordability has become one of the defining challenges facing California families. From housing and transportation fuel to groceries and energy bills, rising costs continue to strain household budgets across the state. At the same time, California has tied itself to ambitious climate goals and strict emission reduction targets, with finish lines fast approaching. The path forward is not choosing between affordability and climate action. The path forward is pursuing climate solutions that deliver both.
California's most successful environmental programs have demonstrated that meaningful emissions reductions can be achieved through innovation, incentives and market-based approaches that protect consumers and support economic growth. As policymakers consider the next generation of climate policies, affordability must remain a core principle alongside environmental progress.
Recent actions by the California Air Resources Board (CARB) on the state's Cap and Invest program recognized an important reality: climate ambition must be balanced with economic impacts on households, businesses and essential industries. By avoiding unnecessary cost increases, CARB acknowledged that long-term climate success depends on maintaining public confidence and economic sustainability.
California's market-based climate programs have consistently proven capable of reducing emissions at lower cost than command-and-control regulations. Cap and Invest, in particular, has generated billions of dollars for climate investments while helping industries identify the most cost-effective pathways to reduce emissions. This balanced approach supports both environmental objectives and economic resilience.
As lawmakers and regulators continue to refine California's climate policies, they should prioritize approaches that lower emissions without unnecessarily increasing costs for consumers, employers, farmers, food processors and manufacturers.
Climate-Smart Farming: A Path to Affordable Food
Low-income families and vulnerable populations bear the brunt of rising costs. A new state report warns that moving away from California’s successful incentive-based programs with farmers in favor of heavy-handed regulation would jeopardize both climate progress and the economic backbone of the San Joaquin Valley. Such a shift risks accelerating the decline of small family farms, leading to industry consolidation and the loss of year-round jobs for agricultural workers, processors and truckers.
With one in five Californians facing food insecurity, dairy farm families are helping close the gap. Over-regulating this vital sector would limit its ability to serve communities and further exacerbate food access challenges.
Like other farmers, local dairy producers play a critical role in ensuring access to nutritious, affordable food, particularly for those in need. In 2023 alone, California dairy organizations donated over 3.6 million pounds of dairy products, with the USDA providing tens of millions more for government programs and food banks. Milk remains one of the most sought-after items at California’s food banks due to its affordability, nutritional value and versatility across diverse cultures.
A Balanced Path Forward
California stands at a crossroads. Policymakers must prioritize affordability while continuing to lead on climate action. By fostering collaborative, incentive-based approaches to advanced energy and decarbonization projects, the state can achieve a future that is both affordable and climate-smart. Rural funding for climate-smart agriculture and food production also benefits disadvantaged communities.
Key climate-smart projects include:
Livestock Methane Reduction Programs:
The California Department of Food and Agriculture (CDFA) Livestock Methane Reduction programs are among the state’s most effective and cost-efficient climate investments. More than 300 methane reduction projects have been funded on dairies in the state, reducing nearly 3 million metric tons of CO2e annually. These projects also provide tremendous air quality benefits for rural and disadvantaged communities as diesel trucks are being fueled with clean, renewable natural gas.
Livestock Methane Reduction Programs:
The California Department of Food and Agriculture (CDFA) Livestock Methane Reduction programs are among the state’s most effective and cost-efficient climate investments. More than 300 methane reduction projects have been funded on dairies in the state, reducing nearly 3 million metric tons of CO2e annually. These projects also provide tremendous air quality benefits for rural and disadvantaged communities as diesel trucks are being fueled with clean, renewable natural gas.
Funding Agricultural Replacement Measures for Emission Reductions (FARMER) Program:
The FARMER program has a proven track record, with oversight from the Air Resources Board and implementation through local Air Districts, replacing older diesel tractors and equipment with cleaner alternatives. The program delivers immediate air quality and public health benefits, reducing over 28,000 tons of NOx, 1,600 tons of PM and 388,000 metric tons of CO2e emissions annually, while prioritizing disproportionately impacted areas.
Funding Agricultural Replacement Measures for Emission Reductions (FARMER) Program:
The FARMER program has a proven track record, with oversight from the Air Resources Board and implementation through local Air Districts, replacing older diesel tractors and equipment with cleaner alternatives. The program delivers immediate air quality and public health benefits, reducing over 28,000 tons of NOx, 1,600 tons of PM and 388,000 metric tons of CO2e emissions annually, while prioritizing disproportionately impacted areas.
Food Production Investment Program (FPIP):
FPIP, managed by the California Energy Commission (CEC), provides grants to food processors to accelerate adoption of advanced energy and decarbonization technologies. Sixty FPIP projects to date will result in a reduction of 3.2 million metric tons of CO2e over their useful lifetimes.