Green Bonds and Climate Finance in California
California uses tax-exempt bonds to finance clean water, renewable energy, pollution control, and other climate-related projects.
The State Treasurer's Office serves as conduit issuer for many of these bond programs.
State-Issued Green Bonds in 2024
Official bond sale records from the State Treasurer's Office show several 2024 issuances labeled as green or sustainability bonds:
- February 27, 2024: Clean Water and Drinking Water State Revolving Fund Revenue Bonds, Series 2024 (Green Bonds), $272.95 million.
- October 23, 2024: California Housing Finance Agency Affordable Housing Revenue Bonds (Sustainability Bonds), $107.58 million.
Source: California State Treasurer's Office, Official Statements bond sales list (treasurer.ca.gov, 2024 entries).
Pollution Control Financing Authority
The California Pollution Control Financing Authority (CPCFA), chaired by the State Treasurer, issued $68 million in tax-exempt bonds in 2024 for environmentally beneficial projects such as recycling facilities and clean wastewater infrastructure, according to the Treasurer's 2024 Year End Report (released December 2025).
CPCFA's 2024 annual report states the Tax-Exempt Private Activity Bond Program has issued more than $17.4 billion for 764 projects since the program began in 1973. Projects meeting climate-related goals may be issued as Green Bonds.
Sources: California State Treasurer's Office, 2024 Year End Report (December 2025); CPCFA Tax-Exempt Bond Program 2024 Annual Report (December 2025).
California's Share of the National Green Muni Market
The Climate Bonds Initiative's Global State of the Market Report (May 2025) found that U.S. state and local green municipal bond volume reached a record $22.6 billion in 2024, up 22% from 2023. California was the most active state, accounting for $12.8 billion or 57% of total U.S. green muni volume, issued by 14 California governmental bodies across 20 bond series.
Source: Climate Bonds Initiative, "Sustainable Debt Global State of the Market Report" (May 2025).
Proposition 4 and Future Climate Borrowing
Voters approved Proposition 4 on November 5, 2024, authorizing $10 billion in state GO bonds for climate and natural resource projects. The State Treasurer's Office will sell these bonds over time as projects are approved and ready for financing.
Phil Ting lists clean energy and infrastructure bond financing among his State Treasurer priorities, citing his Assembly work on rooftop solar programs and wetland restoration funding.
Paid for by Phil Ting for Treasurer 2026, FPPC ID #1444108.