Summary:
California is already suffering dire economic impacts from the effects of climate change, presenting significant business and economic risk to the world’s fifth largest economy. The costs of extreme climate events such as wildfires and droughts have risen steadily throughout the past decade, and are projected to increase dramatically in California if current trajectories continue. These costs are being borne by everyone who lives, pays taxes, buys insurance, or works in California.
At the same time, aggressively addressing climate change — reducing greenhouse gas emissions while growing the state’s clean energy economy — presents one of the greatest economic opportunities of the 21st century. Ambitious climate action produces robust job creation, sustainable economic growth, and California leading global innovation across a wide range of industry sectors. Members of Congress can seize this opportunity by passing a bold American Jobs Plan anchored in clean energy investments; California lawmakers must build on existing state climate policy leadership to ensure the state remains a nexus of investment and innovation in the 21st-century economy.
Findings
- $55 Billion in direct property damage from California wildfires, 2017 – 2020
- $47 billion in economic activity in California’s clean ocean economy under threat from sea level rise and ocean warming
- $50.5 billion in overall production value of California’s 77,500 farms, which now face regular threats from droughts and other climate change-related impacts.
- 484,980 jobs – Nearly a half million Californians are employed in the clean energy economy, representing 285 of the state’s construction workers and 3% of California’s economy-wide workforce
- #1 export – Electric vehicles were the state’s most valuable export in 2020, producing nearly $5.7 billion in revenue
About this Report
This report reviews and compares the damage to California’s economy from recent climate-related disasters and risks from future unabated climate change to the potential impact specific climate action policies could have on job and economic growth in the state’s core industries such as technology, construction, agriculture, and tourism. The report, made possible by the Leslie and Susan Gonda (Goldschmied) Foundation, uses publicly-available information and data from previous E2 analysis, BW Research, state and federal agencies, the University of California system, and other sources.
Looking for More Info?
If you are looking for additional insight into the clean economy and how it drives job growth, please see E2’s other clean energy employment reports, visit e2.org/reports.