States lead, impact follows: Why investing in state-level climate action will secure America’s climate future
Policy organizations, researchers, philanthropic funders, and media often give disproportionate attention to federal activities when it comes to clean energy and climate policies. The list of important federal issues is lengthy, regardless of political control, but D.C. isn’t the only source of consequential clean energy and climate policy.
Often underappreciated is the essential role states play in consistently advancing innovative and proven clean energy and climate policies, technologies, and programs. States, individually and as a group, have driven significant climate progress and continue to do so in periods of federal headwinds and when federal winds are more favorable. And they make daily decisions that affect emissions, job creation, technology deployment, scalable policy innovations, and public awareness.
For stakeholders seeking measurable impacts — whether through commitment of time, expertise, or funding — state climate advocacy offers a diverse portfolio for proven impact: policy wins that are achievable, scalable, and resilient to political swings. States are where the rubber meets the road, and they need ongoing support to keep driving climate progress.
Here are seven critical functions states play in addressing climate change and implementing on-the-ground solutions:
1. States protect energy affordability
States are at the front lines of energy affordability. Whether through executive orders, legislation, utilities commission dockets, or taskforces, states have the power to facilitate construction of clean energy projects and take other actions that protect customers’ energy bills and health, now and for decades to come.
Example: On her first day in office, New Jersey Governor Mikie Sherrill issued executive orders focusing on energy affordability, directing the Board of Public Utilities to offset costs for consumers, accelerate clean energy projects, and improve permitting.
Example: Governor Josh Stein established the North Carolina Energy Policy Task Force in 2025 to deliver recommendations for managing demand increases while ensuring reliable, affordable, and clean electricity service.
2. States drive emissions reductions
States make daily decisions that affect emissions in both the near- and long-term. Whether transportation investments, energy planning, job training, or government procurement, state decisions either increase or decrease emissions — directly impacting air quality, public health, and the environment. Additional venues for consequential state decisions include state legislation, regulations, permitting, grant and funding programs, and federal rule implementation.
Example: New York released its updated state energy plan in 2025, which includes new projections for electricity demand, supply, and transmission needs for achieving the state’s goal of a zero-emissions power sector by 2040. The energy plan incorporated recent federal policy setbacks and modeled nuclear and clean firm options for the first time. It also concluded that the state’s 2040 goal was still viable and the least-cost pathway maximized deployment of nuclear power. The energy plan is an influential planning document for the state and utilities, guiding investment decisions for building a reliable, clean electricity grid.
3. States create jobs and economic opportunities
Successful climate policies don’t just reduce emissions; they tangibly improve people’s lives. States attract private sector investment with policies that support market certainty, cost predictability, consistent permitting, and workforce training. At best, state actions help establish thriving ecosystems for economic growth, while creating jobs, protecting consumers, and reducing emissions.
Example: Pennsylvania’s Reducing Industrial Sector Emissions (RISE) program will provide $396 million to fund projects at industrial facilities that reduce greenhouse gas (GHG) and co-pollutant emissions. The program has the potential to eliminate millions of tons of GHG emissions, create thousands of jobs, and grow Pennsylvania’s manufacturing sector.
4. States deploy innovative technologies
State policies enable and push the deployment of scalable clean technologies, like renewables, nuclear, geothermal, fusion, transmission, and carbon capture and sequestration. Whether it’s the first-of-a-kind technology or an updated iteration of an existing one, states are responsible for creating the right conditions for innovation to thrive.
Example: Louisiana’s Clean Hydrogen Task Force delivered a report to the governor and legislature in 2025 communicating the state’s opportunity for global leadership in deploying clean hydrogen technologies that will create jobs and attract investment. The report noted that “the state is uniquely situated to become a national leader in the emerging clean hydrogen economy” and recommends a dozen actions Louisiana can take to continue its innovative leadership on clean hydrogen.
5. States develop and implement innovative policy solutions
Innovative state policies create replicable examples for other states and the federal government. States are uniquely positioned to develop policy solutions that meet state-specific priorities for topics such as the economy, affordability, climate, and public health.
Example: California passed innovative legislation in 2025 that established a Transmission Infrastructure Accelerator with authority to provide new, lower-cost public financing tools for transmission. An analysis from CATF and Net-Zero California found public-private financing for transmission infrastructure could save Californians $3 billion per year — about $123 billion over 40 years. The state’s role as a public partner would allow portions of key transmission projects to be publicly financed or enter public-private partnerships, lowering the costs of these projects while benefiting ratepayers. This creative solution can be implemented in states beyond California.
6. States carry U.S. climate action to international stages
While the federal government sets U.S. foreign policy, U.S. states have an important voice internationally on climate action. Some states have climate-related agreements with foreign jurisdictions on trade, research, education, and other topics. And Governors routinely carry state climate leadership to international conferences and meetings. Their example helps dampen global sentiment that the U.S. has completely pulled away from climate action. At the 2025 Conference of Parties (COP30) in Brazil, for example, only one elected U.S. federal official attended. Filling this leadership void were over 25 governors and mayors, who traveled to Belém to demonstrate that climate progress remains a priority across the United States. When the U.S. federal government didn’t show up, states did.
Example: At COP30, Governor Gavin Newsom vocally positioned California — the 4th largest economy globally — as a reliable international partner and leader in clean energy, demonstrating California’s significant role in global climate issues.
7. States serve as key messengers and effective storytellers
With strong direct ties to their communities, state officials are important storytellers of clean energy benefits. Through locally grounded examples, like new jobs, lower utility bills, improved air quality, and more resilient infrastructure, state officials can show how climate policies improve people’s lives. Governors, legislators, and appointees make these benefits more understandable through narratives from residents and businesses. Providing state officials with compelling stories and specific examples of climate policies in action helps them make the case for clean energy and climate progress.
Example: CATF developed a series of videos with first-hand accounts of innovative clean energy technologies being deployed across the country. From next-generation geothermal to advanced nuclear energy to carbon capture technologies, these innovative projects are catalyzing economic growth, creating workforce development opportunities, and helping communities better position themselves for the future.
The bottom line
States are the backbone of U.S. climate progress — driving emissions reductions, unlocking economic opportunities, deploying innovative technologies, and sustaining momentum at home and abroad. State leadership is measurable, durable through policy diversity, and deeply connected to the communities they serve. States offer a proving ground for pragmatic solutions that work, scale, and endure. As history has shown, when federal leadership falters, states do not wait — they lead. Continued investment of attention, resources, and funding to state climate action is not just a hedge against federal backsliding; it is the engine that will carry climate progress forward.
