California has taken another decisive step to position itself as a leader in carbon management. Governor Gavin Newsom recently signed SB 614, a new law authorizing the safe development of pipelines to transport captured carbon dioxide to underground storage sites. The measure builds on earlier legislation establishing a framework for carbon capture and storage and is part of a broader package of climate bills that passed this fall. Together, these efforts are shaping a more coherent pathway for large-scale carbon removal in the state.
This development matters because carbon management infrastructure—particularly CO₂ pipelines—is essential to accelerating emissions reductions in hard-to-decarbonize sectors. By creating the regulatory and financial certainty needed to move captured CO₂ from industrial sites to permanent storage, California is addressing one of the key bottlenecks limiting deployment. These projects are expected to drive investment, job creation, and technology advancement that extend well beyond the state’s borders.
The move underscores the widening gap between California’s climate ambitions and the current federal posture. While Washington D.C. debates the future of EPA reporting programs and incentives, as well as scientifically-based metrics that acknowledge the contribution of Greenhouse Gases to climate change, California is pressing forward with its own policy architecture to scale carbon capture and removal. The message is clear: the state intends to maintain momentum on climate action regardless of shifting federal signals.
This announcement follows California's recent confirmation that it will extend its state-wide Cap-and-Invest program through to 2045, despite pushback from the Federal Government on the state's authority to regulate its emissions under the Clean Air Act.
Importantly, funding for California’s carbon management efforts draws from its Cap-and-Invest program. Revenue from that system—via the Greenhouse Gas Reduction Fund—is channeling capital into projects that directly reduce or remove emissions, demonstrating the tangible outcomes of carbon pricing. As these market mechanisms continue to fund critical infrastructure like CO₂ pipelines, they reinforce how compliance carbon markets can translate policy ambition into investable, real-world decarbonization.