California not only leads the nation in the fight against climate change — in some ways it leads the world.
The Golden State has the world’s second least carbon-intensive economy, according to a new study from public policy group Next 10. Only France, with its large fleet of nuclear power plants, emits fewer greenhouse gases for each dollar (or euro) of economic activity.
California has more electric cars than any other state or country, leads the world in clean-technology investment and boasts a fast-growing fleet of renewable power plants.
And according to the report, the state’s economy has continued to grow as its emissions have shrunk. From 1990 through 2012, California’s greenhouse gas emissions shrank by 25 percent per person — largely the result of more efficient homes, appliances and cars — while per capita gross domestic product rose 37 percent.
“I think of California as a model for other countries,” said venture capitalist F. Noel Perry, who founded Next 10. Much of the credit, he said, goes to California policies that emphasize energy efficiency and boost renewable power.
“These policies have set the bar higher for entrepreneurs and investors, in energy efficiency and renewables,” he said. “We’ve seen that continually repeated here.”
State law requires California utilities to get 33 percent of their electricity from the sun, the wind and other renewable source by the end of 2020. And Gov. Jerry Brown wants that expanded to 50 percent by 2030. The state has also created a cap-and-trade system to rein in emissions from factories, power plants, oil refineries and other sources.
Each year, Next 10 publishes a California Green Innovation Index, tracking the progress of the state’s clean-energy economy. But this is the first time the index has ranked California against other countries. The idea was inspired by the U.N. Climate Change Conference scheduled to be held in Paris in December.
California ranks as the world’s eighth-largest economy. And while some of its key industries, including technology and entertainment, have relatively low greenhouse gas emissions, California is also the nation’s third-largest oil producer and home to most refineries on the West Coast. Among large economies, the report lists California as 20th in terms of emissions, with China occupying the top spot.
About 23 percent of the state’s electricity came from renewable sources during the first half of 2014 (the full-year tally is not yet available). For comparison, renewable power accounted for 27 percent Germany’s electricity during the same period, according to the report.
About 19 percent of worldwide electric vehicle sales in 2014 were in California, barely edging out China, whose leaders are pushing hard to deploy the technology in its smog-shrouded cities.
California’s clean-technology industry attracted more venture capital in 2014 than any other state or country, $5.7 billion. While the industry endured a boom and a bust during the last decade, investment is growing again, rising 153 percent from 2013. Most of that jump came from investments in Uber (the report counts ride services as a clean technology). But even with Uber stripped out, California clean-tech investments rose 20 percent in 2014, according to the report.
Critics of the drive to green California’s economy have often warned that the effort could send energy bills soaring in a state that typically has some of the country’s highest electricity rates and gasoline prices. The report found, however, that the average monthly residential electricity bill in California declined 4 percent between 1993 and 2013 when adjusted for inflation, probably due to more energy-efficient homes and appliances. For large industrial utility customers, the drop was far more dramatic — 57 percent. Bills for smaller commercial customers, in contrast, rose about 8 percent.