Why California Is Still a Climate Bellwether

In some ways, Sacramento has Washington D.C. vibes. California’s state capital runs on government, lobbying, and the sense that politics is the local industry. My hotel room when I traveled there this week for conversations about the future of energy and climate policy was decorated with political cartoons; the elevator featured political quotes. But in 2026 perhaps nothing could be more different than how the two respective governments are approaching climate policy. Across a range of climate related issues, California has leaned in where the federal government steps back. It goes without saying that California can’t replace the federal government. But as the largest and most economically prosperous state in the country, its position is consequential. As companies try to parse the signal from the noise and determine the future of climate policy and demand for clean technologies, the federal government is just one indicator. Leaders now need to interpret a range of signals from governments moving in different directions. And California makes the case better than any other state that climate policy will continue in the U.S.“You have a federal government that’s really trying to send ...