How California Can Seize Momentum to Advance Carbon Dioxide Removal

Cover Image by: Haizhan Zheng/iStock

World Resources Insitute | January 8, 2026 
By Deepika Nagabhushan, Dan Lashof and Katie Lebling 

As the U.S. federal government continues to roll back crucial environment and climate legislation, California’s climate leadership is more important than ever — including its policies to scale up carbon dioxide removal (CDR), which includes a suite of technological processes that remove carbon dioxide directly from the atmosphere. CDR is necessary to address greenhouse gas emissions from hard to abate sources, which along with deep emissions reductions, can achieve net-zero emissions.

As the fourth largest economy in the world and an engine of innovation, California has the economic and entrepreneurial capacity to incubate a large enough CDR industry to drive lower costs and learning-by-doing, increasing the likelihood that other states or national governments will adopt similar policies. California also has a comprehensive climate policy framework that will ensure that CDR supplements —rather than substitutes for — deep emissions reductions.

In September, the California legislature passed a substantial package of climate and energy legislation, which included an unmistakable signal of support for CDR via a bill known as the Carbon Dioxide Removal Purchase Program (SB 643), which saw nearly unanimous legislative support. SB 643 would have established a $50 million grant program to fund innovative, verifiable CDR projects in California no later than 2035. It would have also mandated matching private sector funds, ultimately creating a $100 million program.

However, when SB 643 reached Gov. Gavin Newsom’s desk, he vetoed it. While still recognizing the importance of CDR to achieving the state’s net-zero goals, he noted that SB 643’s program could be implemented using funds allocated under a previously passed bill, SB 840, which allocates $85 million for climate-focused innovation and deployment projects that advance California’s plan to achieve net-zero emissions by 2045. This legislation expands on the state’s suite of climate policies helping define the role of CDR.

Although it was surprising and disappointing to have SB 643 vetoed, California policymakers have other tools that can and should be used to achieve the goals of the legislation.