Use of Proceeds

Uses of New York Cap-and Invest Proceeds

The Climate Action Fund will contain the proceeds from the future sale of allowances through cap-and-invest auctions. The fund includes three accounts, each with a specific purpose to help ensure that cap-and-invest is affordable for all New Yorkers, helps industry and small businesses remain competitive as they decarbonize, bolsters carbon reductions, and focuses on benefits to disadvantaged communities, accompanied by strong labor standards to ensure the creation of high-quality jobs.

  1. The Consumer Climate Action Account will deliver at least 30 percent of proceeds directly to New Yorkers each year to mitigate any consumer cost increases that could result from the program.
  2. The Industrial Small Business Climate Action Account will deliver up to 3 percent of proceeds to support energy affordability for industrial small businesses.
  3. The Climate Investment Account will invest at least 67 percent of proceeds to drive tangible reductions in New York's carbon footprint, supporting the state's shift to a sustainable and clean energy economy.

Proposed Draft Investment Framework

Investments supported by the Climate Investment Account will be critical for accelerating an equitable and affordable clean energy transition and are an essential part of New York’s cap-and-invest program.

In 2024, DEC and NYSERDA presented a draft investment framework and potential areas for investment. Following the presentation, DEC and NYSERDA posed a series of questions to stimulate public input and held a question-and-answer session. View a recording of the webinar by visiting the Meetings and Events page.

DEC and NYSERDA are continuing to seek public input on a draft investment framework to guide the allocation of these proceeds and identify areas for investment. Proposed investment areas include, but are not limited to, Clean Transportation and Charging Infrastructure, Low-Carbon Buildings, and Low-Carbon Industry, as well as cross-sectoral areas such as Workforce Development and Just Transition and Community-Directed Grants and Capacity Building in Disadvantaged Communities.

DEC and NYSERDA invite the public to provide comments on the development of the draft investment framework and created a template document to assist commenters in providing feedback on these investment topics [PDF].

Feedback on the uses of Climate Investment Account proceeds will be vital to developing a portfolio of investments that will reduce emissions, aid the State’s ongoing just transition to a clean energy economy, and ensure that all New Yorkers, including those in disadvantaged communities Link opens in new window - close new window to return to this page., receive benefits as part of the transition.

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While specific input is requested on the use of Climate Investment Account proceeds, DEC and NYSERDA continue to welcome feedback on the overall development of the program. Learn more.