Next 10 has officially published its 16th California Green Innovation Index report, which shows that pace of emissions reductions has accelerated in recent years, with steep drops in key sectors helping the pursuit of 2030 climate targets.
Going by the published results, California has cut more than 22% of its greenhouse gas emissions since passing its landmark climate law in 2006, while simultaneously growing its gross domestic product per capita by 38%. Taking a deeper view of things would reveal that transportation emissions fell by 13.5% from 2019 to 2022. Furthermore, emissions from heavy-duty vehicles that, by the way, are a significant contributor to California’s air pollution fell more than 13% in just one year between 2021 and 2022.
On the other hand, pollution from passenger vehicles also declined in recent years, falling 14% from 2019 to 2022 as zero-emission vehicle sales soared due to rising public demand and state air quality standards. The state would further hit its goal to have 1.5 million zero-emission vehicles on the road by 2025 two years early, in 2023.
“California’s progress in cutting emissions is accelerating. We’re seeing real-time proof that the state’s climate policies are working,” said Noel Perry, venture capitalist and founder of Next 10. “As we enter the holiday season, it’s important to remember these cuts are not just numbers on a page; they represent healthier kids and blossoming industries supported by an innovative workforce that has mainstreamed clean energy technologies. Unfortunately, it also underscores what’s at stake under a federal administration hostile to clean air standards and climate action.”
Another detail worth a mention here is rooted in how the new report bucks a big trend from previous editions by a showcasing a narrower gap between California’s pace of emissions reductions and its climate targets. You see, between 2018 and 2022, emissions decreased by an average of 2.5% each year, despite fluctuations due to the pandemic. Having said that, the state remains seven years off its goal of cutting emissions 40% below 1990 levels by 2030.
Talk about the published results on a sector-specific level, we begin from electric power sector, where total emissions (combining imports and in-state generation) fell by 43% from 2006 to 2022. Next up, the study discovered that new power plant installations across the state have been 100% renewable since 2021.
Emissions in the electric power sector fell by more than 4% from 2021 to 2022. In comparison, total emissions for this sector fell by less than 1% from 2019 to 2022. These reductions from 2019 to 2022 also came largely because of imports, where emissions fell by 19.2%, compared to an increase of 9.5% from in-state-generated power.
Anyway, next up, we must dig into how the renewable energy sector is contributing towards the wider sustainability push. You see, renewable energy happens to be the fastest-growing fuel source for electric and non-electric energy consumption, growing by 36.1% and 119.6%, respectively, between 2012 and 2022.
From 2022 to 2023, energy storage capacity grew by an estimated 23% in California and 117% in the rest of the U.S. In 2023, California alone accounted for 44% of energy storage installations nationwide.
Among other things, we ought to mention that, during 2023, total renewable energy generation in the power mix was 36.9%, up 1.1% compared to 2022. This is, however, still short of the interim SB 100 goal of hitting 44% by the end of 2024.
“The data show that the state’s standards, programs, and incentives are working to drive down pollution and increase electric vehicle adoption,” said Perry. “But these same standards are at risk if the Biden administration does not release California’s Clean Air Act waivers before Trump takes office, or if the administration seeks to roll them back via other means in coming months.”
Thanks to the state’s energy efficiency investments, residential electricity bills continue to remain in line with the national average despite an increase in comparison to its own historical benchmarks. In owner-occupied housing, solar and other fuels also had the greatest percentage growth from 2021 to 2022, at +8.4% and +18.6% respectively.
