decarbonfuse Icons/logo

CCUS

California's Carbon Removal Blueprint: How the Golden State is Shaping America's Net-Zero Future

Published by Todd Bush on June 18, 2025

A new chapter in climate leadership

California is once again at the center of climate innovation. Known for leading on vehicle emissions and cap-and-trade programs, the state is now pushing boundaries in carbon dioxide removal (CDR) by establishing measurable targets, creating dedicated procurement programs, and layering multiple legislative mandates.

Unlike other states, California has defined specific annual CO₂ removal goals and has implemented a statewide framework that actively guides both nature-based and tech-driven solutions. This level of integration and accountability is unmatched in other state-led climate efforts.

As global and national uncertainty grows around federal climate policies, California is stepping in with a robust strategy that mixes regulation, technology, and big-picture thinking.

>> RELATED: Plan to Build California’s First Carbon Removal and Storage Project Gets a Big Boost

california's wind mills

Why carbon removal matters

Getting to net-zero emissions isn’t just about cutting pollution. It also means cleaning up what's already in the air. That’s where CDR comes in, using nature and tech to pull CO2 out of the atmosphere. California’s bold targets, set in its 2022 Scoping Plan, aim for 7 million metric tons of CO2 removed by 2030 and 75 million metric tons by 2045.

Projected Carbon Removal Targets in California

Metric Tons of CO₂ to be Removed Annually

Year Target CO₂ Removal (Million Metric Tons) Primary Method
2025 2 Pilot DAC & Biomass
2030 7 Scaled DAC + Land Projects
2040 40 Tech-Dominant Mix
2045 75 Full Integration

Laying the policy groundwork

California’s carbon removal framework isn’t just a wishlist. It’s backed by real legislation. The California Climate Crisis Act (AB 1279) sets legally binding net-zero goals by 2045, mandating an 85% reduction in emissions from 1990 levels. That ensures carbon removal won’t become a loophole for continued pollution.

Meanwhile, SB 905 provides the regulatory muscle for CDR and carbon capture, utilization and storage (CCUS). It covers everything from permitting to safety standards, ensuring carbon projects roll out responsibly and equitably.

Key California Carbon Removal Policies

Bill Purpose Status
AB 1279 Legally binds net-zero emissions by 2045 with 85% reductions from 1990 levels. Enacted 2022
SB 905 Creates regulatory framework for CDR and CCUS deployment in CA. Enacted 2022
SB 643 Allocates $50M to buy CDR credits from CA-based projects. Passed Senate, under Assembly review
SB 88 Measures biomass emissions from wildfire mitigation used for CDR. Advancing through Assembly

A smart mix of methods

California’s strategy goes beyond just planting trees. It combines nature-based and tech-heavy solutions that each contribute differently to the state’s carbon removal targets.

Direct air capture, for example, offers scalable, long-duration CO₂ removal, while biomass carbon removal leverages wildfire mitigation efforts to reduce waste and store carbon.

Marine carbon dioxide removal and carbon mineralization provide emerging, experimental pathways that diversify risk and increase the total capacity for carbon drawdown.

  • Direct air capture, like the kind developed by Climeworks
  • Biomass carbon removal from wildfire mitigation
  • Carbon mineralization and enhanced rock weathering
  • Marine carbon dioxide removal, explored through AB 1086

These approaches vary in cost, scale, and permanence. That’s why the state is diversifying investments instead of betting on one.

refinery

>> In Other News: Senate Bill Would Raise Value of Tax Credit to Use Captured CO2 to Produce More Oil

Public money, private momentum

California’s public sector is putting serious money on the table. SB 643, introduced by State Sen. Anna Caballero, would direct the state to spend $50 million on carbon removal credits from diverse, in-state projects. This would signal demand and de-risk early investment, especially for startups.

It follows the Department of Energy's procurement program, which launched under the Biden administration but is no longer continuing. California stepping in helps fill that gap and keep momentum going.

Keeping it real with governance

While innovation is key, accountability is non-negotiable. That’s why SB 905 mandates the California Air Resources Board (CARB) to regulate six big issues:

  1. Project permitting
  2. Long-term storage safety
  3. Financial responsibility
  4. Monitoring systems
  5. Pipeline infrastructure
  6. Community impact safeguards

SB 88, another active bill, focuses on measuring lifecycle emissions from biomass used in CDR, especially from wildfire-related sources. This kind of scrutiny is what builds public trust.

Lessons for the rest of the country

California isn’t the only state working on carbon removal. But it's the first to:

  • Set quantitative CDR targets in its climate plan
  • Enact multiple overlapping laws addressing both technology and land-based methods
  • Build public procurement mechanisms for CDR credits

States like New York and Washington have also passed strong emissions laws. For example, New York has legislated an 85% reduction in greenhouse gas emissions from 1990 levels by 2050 and is investing in geological carbon storage. Washington’s Climate Commitment Act mandates a 95% reduction in GHG emissions by 2050 and supports pilot programs in direct air capture and carbon mineralization. Few have mapped out carbon removal in such a detailed and forward-thinking way.

Industry is watching

CDR startups, clean tech investors, and big emitters all have a stake here. California’s policies signal long-term opportunity and stability. According to Katie Lebling, senior associate at World Resources Institute, "The urgency of the climate crisis demands bold, creative approaches like the ones California is testing."

As carbon removal markets grow, companies like CarbonCapture Inc., Heirloom, and Charm Industrial are likely to ramp up deployments in California, attracted by the policy clarity and potential funding.

A pathway worth following

California’s model doesn’t just help the state hit its own goals. It lays out a repeatable playbook for others. Define emissions limits. Make carbon removal complementary. Create demand through procurement. Ensure safety and equity through regulation. Then fund the science and tech to push boundaries.

That’s how you lead a climate transformation. That’s how California is doing it.

Icons/external Source

Add Comments

Subscribe to the newsletter

Icons/inbox check

Daily decarbonization data and news delivered to your inbox

Follow the money flow of climate, technology, and energy investments to uncover new opportunities and jobs.


Companies

Latest issues

View all issues

Company Announcements

Daily decarbonization data and news delivered to your inbox

Follow the money flow of climate, technology, and energy investments to uncover new opportunities and jobs.

Subscribe illustration