Gov. Newsom emphasizes California's efforts in combating climate change beyond mere words.

• On Thursday, California Governor Gavin Newsom stated that the state is at a "pivotal juncture" to address climate change and transition from fossil fuels.
• Devastating wildfire seasons and historic drought conditions have been exacerbated by the climate crisis in California.
• This year, the state's budget proposal includes $22 billion in new funding for climate initiatives, and an additional $15 billion from last year's budget for a total of $37 billion in climate investment over six years.

On Thursday, California Governor Gavin Newsom stated that the state is at a "transformative moment" to transition away from fossil fuels, as climate change continues to cause devastating wildfire seasons and historic drought conditions across California.

The governor's comments to CNBC's Yasmin Khorram were made following the release of the state's 2021 budget proposal, which includes $22 billion in new funding for climate change initiatives and a total of $37 billion in climate investment over six years.

The severity of the challenge is evident," Newsom stated. "The recent droughts, scorching heat, and devastating wildfires necessitate a more aggressive approach to managing these existential threats. We are taking action, not just speaking about it.

The state's commitment to climate funding in the budget is a demonstration of its readiness to take action, unlike other states and nations who merely discuss the issue.

"Many jurisdictions make grand promises about reducing greenhouse gas emissions, but often fail to follow through with the necessary actions," Newsom stated.

"The budget's funding will help convert old diesel buses that transport kids to school and remove drayage trucks from highways and freeways," Newsom stated.

With California facing increasing challenges such as wildfires, water shortages, and a historic drought, there is mounting pressure on Newsom to take more immediate action on climate change.

The governor has signed executive orders mandating that all new cars be electric by 2035 and prohibiting new fracking permits by 2024. The state's budget plan prioritizes transitioning the transportation sector to cleaner energy, as vehicles account for approximately 40% of the state's climate-related pollution.

The administration has adopted a building code to transition new buildings to clean energy sources, and in 2020, California became the first state to pledge to protect 30% of land and coastal waters by 2030.

The solar incentive program in California, which is aimed at promoting clean energy, could be severely impacted by proposed changes, according to a report from Wood Mackenzie. These changes could reduce the state's solar market by half by 2024, potentially hindering its leadership role in the clean energy sector.

The primary driver of the growth of residential solar customers in California is the incentive program.

The California Public Utilities Commission has defended the modifications, asserting that it is inequitable for affluent consumers who can afford solar panels to receive subsidies at the expense of lower-income communities' rate-payers.

We recognize that the costs of procuring rooftop solar are not solely borne by the individual, but are shared more broadly. We want to ensure that we are careful in distributing these costs so that we can continue to promote our low-carbon and green growth efforts.