4 Takeaways from California’s Carbon Dioxide Removal Policies

California has long been a national leader on ambitious climate policy and action. In 2006, the state passed landmark legislation that led to the first economywide cap-and-trade system. It later became the first state to set strict greenhouse gas (GHG) emissions standards for vehicles and, in 2022, approved a net-zero plan to eliminate GHG emissions by 2045 - five years ahead of the national net zero GHG target.

Now, California is leading the nation in its carbon dioxide removal (CDR) policies and actions to help meet the state's climate goals. CDR approaches directly remove carbon dioxide (CO2) from the air and are needed alongside deep emissions reductions to reach net zero.

The carbon removal-related policies proposed or enacted in California over the past several years are among the first of their kind in the U.S. They include an innovative and ambitious set of proposals that can provide a model for other states looking to progress on carbon removal. California's actions on carbon removal are also particularly important as uncertainty remains around federal policy support for CDR.

California's Scoping Plan and Key Carbon Dioxide Removal Policies

In late 2022, the California Air Resources Board, the air pollution regulator in California, adopted the state's latest Scoping Plan, which serves as a roadmap for how California can reach net-zero GHG emissions by 2045 or sooner. Although it does not create any laws, it serves as a guide for agencies and regulators. The 2022 Scoping Plan also lays out specific targets for carbon removal in California: 7 million metric tons of CO2 in 2030 and 75 million metric tons of CO2 in 2045.

These targets cover both natural and working lands (such as croplands, forests or grasslands), as well as novel technological approaches, such as direct air capture and biomass carbon removal. However, because the Scoping Plan anticipates only around 1.5 million metric tons of CO2 removal per year through 2045 from natural and working lands, most of the removal needed to meet these two targets is expected to come from newer technological methods.

In Switzerland, the company Climeworks installed direct air capture technology on top of a garbage incinerator in Hinwil, outside of Zurich. Technologies like this, used to extract carbon dioxide from the air, are what California is creating its policies and legislation around. Photo by Orjan Ellingvag / Alamy Stock Photo.

As California works to meet these goals, it is at the forefront of scaling up carbon dioxide removal and developing regulatory frameworks to guide responsible deployment.

At the same time, California's cap-and-trade system is currently set up to operate through 2030, so discussions have begun on reauthorizing the program to extend its lifetime and help the state meet its climate goals. Depending on whether the reauthorization is a simple extension of the program's lifetime or a more extensive revision of the program, cap-and-trade reauthorization could include broader changes that may affect carbon removal development and deployment in the state.

Existing and Proposed Policies and Activities in California Relevant to CDR

Legislation	Details	Status
Carbon sequestration: state goals: natural and working lands: registry of projects (SB 27)	Establishes and maintains a directory of projects for carbon sequestration from natural and working lands and direct air capture.	Signed into law in 2021.
California Climate Crisis Act (AB 1279)	Establishes legal target of 85% emission reductions and net zero emissions by 2045.	Signed into law in 2022.
Carbon Sequestration: Carbon Capture, Removal, Utilization and Storage Program (SB 905)	Establishes a regulatory foundation to govern the safe deployment of carbon dioxide capture, removal, utilization and sequestration.	Signed into law in 2022.
California Global Warming Solutions Act of 2006: climate goal: natural and working lands (AB 1757)	Establishes targets for carbon sequestration from natural and working lands for 2030, 2038 and 2045 that are incorporated into the Scoping Plan.	Signed into law in 2022.
Net zero greenhouse gas emissions goal: carbon dioxide removal: regulations (SB 285)	Would create requirements for carbon removal used to counterbalance residual emissions in California.	Held in Senate committee.
Carbon Dioxide Removal Purchase Program (SB 643)	Would require CARB to procure $50 million worth of CDR credits before 2035.	Passed Senate. Advancing to Assembly committee consideration.
Marine Carbon Initiative (AB 1086)	Would establish a Marine Carbon Council to advance scientific understanding of mCDR and a Marine Carbon Research Program to fund research projects up to $2 million per year.	Held in Assembly committee.
Carbon Dioxide Removal Market Development Act (SB 308)	The 2023 version would have required emitting entities to purchase increasing amounts of carbon removal to counterbalance their emissions. The 2024 revision would have required CARB to adopt regulations to ensure the state scales CDR to a level needed to reach net zero in 2045.	2023 version passed Senate, but not the Assembly. 2024 version did not pass the Senate Appropriations committee.
Air resources: carbon emissions: biomass (SB 88)	Directs CARB and the Department of Forestry and Fire Protection to develop a system to quantify the lifecycle emissions of biomass removed from wildfire mitigation treatments in forests, including its use for CDR.	Passed Senate. Advancing to Assembly committee consideration.

Note: Updated as of mid-June 2025.

California's Innovative Policy Directions

California is the only U.S. state so far that has set a specific quantitative target for scaling up carbon removal. Complementing this, the state has begun to develop a broader regulatory framework to meet these targets as well as emerging efforts to support early stage research and development of novel approaches.

1) Setting Targets to Ensure Climate Impact

The California Climate Crisis Act, or AB 1279, was signed into law in September 2022 and requires net-zero greenhouse gas emissions (GHG) by 2045 and net-negative emissions thereafter. It mandates at least 85% emissions reductions from 1990 levels by 2045, ensuring that carbon dioxide removal (CDR) does not delay ambitious emissions reductions as the state approaches net zero.

One concern around CDR is that it could reduce or delay efforts to cut GHG emissions and enable continued oil and gas production. By placing legal requirements on the minimum amount of emission reductions needed by mid-century, AB 1279 helps ensure that the state's priority remains on reducing emissions and that carbon removal plays a complementary role.

Other states, particularly those with net-zero targets, should ensure that emissions reduction remains the top priority in reaching net zero, which can be done by establishing minimum emission reduction levels (for example, 85% or higher) as part of the overall target. Besides California, New York has also set an 85% emissions reduction requirement and Washington has set a legally binding 95% GHG emission reduction goal by 2050. Both are part of broader goals to reach net zero by 2050.

Beyond requiring specific levels of emission reductions, other states with net-zero targets could also consider making the role of CDR more explicit - for instance, estimating the expected level of residual emissions to be counterbalanced by carbon removal, distinguishing between the role of enhancing natural carbon sinks and scaling up novel, technological carbon removal approaches, as California has also done in its Scoping Plan.

A bicyclist rides along the beach past a factory in Manhattan Beach, California. A proposed rule would require emitters to purchase carbon removal credits to offset their emissions. Photo by rarpia/iStock.

While California's Scoping Plan relies exclusively on direct air capture and bioenergy with carbon capture and storage for durable CDR, there is a broad range of carbon removal approaches that should be considered (with some approaches being more applicable in some states than others) including carbon mineralization, seaweed cultivation and other types of biomass carbon removal. Previous analysis looking at carbon removal potential in California found that biomass conversion to hydrogen with carbon capture could play a large role. WRI's research has found that burial of biomass residues from wildfire treatments could also provide effective long-duration carbon removal.

California has also set targets for increasing sequestration in natural and working lands. AB 1757 establishes targets for carbon sequestration from natural and working lands for the years 2030, 2038 and 2045. As directed by AB 1757, potential carbon removal from natural and working lands is incorporated into the state's Scoping Plan. Projects that increase sequestration on natural and working lands are also tracked via a registry established by SB27 in 2021.

2) Developing a Governance Framework for Carbon Dioxide Removal

SB 905, also known as the Carbon Sequestration: Carbon Capture, Removal, Utilization and Storage Program, was signed into law at the same time as AB 1279 in September 2022. This bill directs California state agencies to establish the regulatory foundation for carbon dioxide removal (CDR) and carbon capture, utilization and sequestration (CCUS) projects.

SB 905 directs the California Air Resources Board (CARB) to create a program in California aimed at accelerating the deployment of both CCUS and CDR. It calls for regulation on six key issues: permitting, financial responsibility, safety and monitoring, pipelines, unitization and storage. The bill also requires CARB to adopt regulations to minimize GHG emissions, co-pollutants, air and water pollution, seismic impacts and potential health and safety risks to local communities, among many other things.

Since being signed into law in September of 2022, the main proceeding around the creation of a Carbon Capture, Removal, Utilization and Storage Program kicked off in March of 2025, while some of the regulatory proceedings around the individual key issues are underway. WRI submitted public comments addressing key considerations for financial responsibility, safety and monitoring, and published an article further exploring these issues.

Having one comprehensive regulatory framework that addresses key issues related to carbon capture, removal and sequestration, as will be the case once SB 905 has been fully implemented, is crucial to governing the safe and responsible deployment of carbon capture and carbon dioxide removal projects.

In February 2025, California State Sen. Josh Becker (D) introduced SB 285, which outlines what types of CDR would qualify to counterbalance residual emissions in California when the state reaches net-zero. While this bill did not advance out of Senate committee consideration, so will not move forward this year, it raises an important issue about how CDR is used.

A key element of this bill was the "like-for-like" concept, which would have required the expected duration of the carbon removal to either match the expected duration of the GHG in the atmosphere that it counterbalances or match the source from which it is emitted. For example, long-duration CDR would need to counterbalance fossil CO2, but shorter duration CDR, like some nature-based solutions, could counterbalance methane emissions as well as CO2 emissions from land use and forests.

Such a provision would have been precedent-setting in legislation. It aligns with recommendations from some scientists and groups in the CDR community but has also raised concerns about unintended impacts on finance for forest protection and restoration.

SB 88 directs CARB and the Department of Forestry and Fire Protection to develop a system for quantifying lifecycle emissions associated with utilization of biomass removed from wildfire mitigation treatments in forests, including the use of biomass for CDR. It would also require CARB to assess the suitability of developing a carbon credit protocol for biomass carbon removal. As of mid-June 2025, SB 88 passed out of the Senate and will go to the Assembly next.

3) Increasing Demand for Carbon Removal in California

California State Sen. Caballero introduced SB 643, the Carbon Dioxide Removal Purchase Program, in February 2025. This bill would require CARB to establish and administer a program to purchase $50 million worth of CDR credits from eligible projects by the end of 2035. It includes requirements that no more than $25 million can be used on a single CDR category (e.g., direct air capture, biomass carbon removal and storage, enhanced mineralization and marine carbon dioxide removal) and no more than $12.5 million can go to a single CDR supplier. Both requirements help ensure a diversity of approaches and suppliers will be supported. The bill would require CARB to adopt guidelines for eligible carbon dioxide removal projects in 2026, require projects to be located within the state, and prioritize projects that are geographically diverse and provide community benefits.

The Mojave Desert in Kern County, California is home to the Tehachapi Pass wind farm and has been a focal point for direct air capture development in the state. Photo by GaryKavanagh/iStock.

Under the Biden Administration, the Department of Energy led a procurement program to purchase $35 million in carbon removal, which the Trump administration is not continuing. CDR procurement bills have also been introduced in Massachusetts in 2023 and New York in 2022, but neither state passed them. If SB 643 passes, it would represent an important step forward for government procurement of CDR, making progress toward reaching California's CDR goals and creating demand in the state.

As of mid-June 2025, SB 643 made it through the Senate and will go to the Assembly next.

In 2023 during California's previous legislative session, Sen. Becker introduced the Carbon Dioxide Removal Market Development Act, or SB 308. While this bill was revised in 2024 and ultimately did not pass, it represents an innovative and ambitious policy formulation that could be reintroduced or modeled elsewhere.

In its original form, SB 308 would have required certain emitters to purchase CDR equivalent to an increasing amount of their emissions, up to 100% in 2045, when the state is committed to net-zero. Such an approach would have simultaneously incentivized emissions reductions and driven demand for CDR.

A revised version of the bill, updated in 2024, moved away from specifying that polluters pay for CDR. Instead it directed CARB to develop and adopt regulations to ensure that the state could meet its goal of scaling carbon removal to compensate for any continued emissions in 2045, thereby achieving net zero GHG emissions.

4) Increasing Understanding of Marine Carbon Removal

A third bill introduced in the 2025 legislative session, AB 1086, aimed to increase research and understanding of marine carbon dioxide removal (mCDR) approaches. It didn't move out of Assembly committee consideration and will not advance this year, but represents an important effort to increase research and development funding for marine CDR as the federal government steps back.

AB 1086 would have established a Marine Carbon Initiative consisting of a Marine Carbon Council and Marine Carbon Research Program. The council would have identified knowledge gaps and made recommendations to address them by 2028. By that same year, the research program would have been established to provide grants for mCDR projects.

What's Next for Carbon Dioxide Removal Policy Across the US?

As the U.S. federal government appears unlikely to support carbon removal at the levels seen in past years, state-level action is more important than ever. While California is not the only state introducing and enacting policies to advance carbon removal, it is a leader and has taken innovative approaches that have not yet been tested in other states or federally.

Although states across the U.S. have different political contexts and levels of interest in climate policy, the way that California has approached carbon removal in policy can provide valuable insights and potentially a model for other states on how to use target-setting to maximize climate impact, support demand creation and ensure there are governance frameworks in place. At the same time, given the magnitude of California's commitment toward carbon removal - 75 million metric tons of CO2 per year by 2045 - there is still room for additional innovation and creativity to help achieve this ambitious goal.

This article was originally published in September 2023. It was last updated in June 2025, to reflect the latest state of play for California's carbon removal policies.