California Pushes for 90% CO2 Emissions Cut by 2045 with Stronger Low Carbon Fuel Standards

The California state government announced its plan to strengthen the Low Carbon Fuel Standard (LCFS) to reduce CO2 emissions from the transportation sector by 90% by 2045.

Under the new policy, California aims to reduce the carbon intensity of its fuel mix by 30% by 2030 and by 90% by 2045. The California Air Resources Board (CARB) stated that the updated plan will boost support for zero-emission vehicle infrastructure, particularly for medium- and heavy-duty vehicles, while increasing transportation agencies’ opportunities to earn emissions credits.

The Low Carbon Fuel Standard operates under emissions trading rules, requiring producers who fail to meet targets to purchase emissions credits from those who do. CARB stated that this system has attracted an annual investment of $4 billion from the private sector into clean transportation.

Most of the revenue generated from emissions trading will be invested in low-income communities. This investment will provide incentives to support the establishment of electric vehicle (EV) chargers and hydrogen fuel stations, with approximately $4.8 billion expected to be invested over the next decade. Additionally, funding will also be allocated for zero-emission infrastructure in remote areas. California is heading the way in phasing out internal combustion engines compared to other states in the U.S.

Through the 2023 Advanced Clean Fleets (ACF) regulation, CARB has banned the sale of new internal combustion engine trucks starting in 2036, and the sale of gasoline vehicles may also cease after 2035.

California received a special waiver from the U.S. Environmental Protection Agency (EPA) to implement stricter vehicle emissions standards than other states. However, some clean air regulations recently passed in Sacramento have not yet received EPA approval.

However, there are concerns that these regulations may be jeopardized by President-elect Donald Trump’s inauguration in January.