Governor Gretchen Whitmer and the legislature announced a Fiscal Year 2025 budget deal that included over half a billion dollars to help implement the MI Healthy Climate Plan.
Michigan Capitol Building
The MI Healthy Climate Plan (MHCP) is the state’s climate action roadmap that charts a path to a prosperous, healthy, equitable, carbon-neutral Michigan by 2050. The MHCP’s goal of carbon neutrality by 2050 includes an interim target of 52 percent greenhouse gas (GHG) emissions reductions by 2030 as part of a “Roadmap to 2030” (Roadmap) outlining immediate actions needed to meet the state’s climate goals. The Michigan Department of Environment, Great Lakes, and Energy (EGLE) is responsible for MHCP oversight and implementation, but the climate crisis requires an all-of-government approach.
The budget deal closely followed the plan’s Roadmap, covering nearly each focus area of the MHCP: just transition, energy, transportation, built environment, natural and working lands, industry, and other climate-related investments. This is a snapshot of new investments and does not necessarily cover all state programs with climate benefits.
Clean the Electric Grid
In 2019, Michigan’s power sector contributed approximately 30 percent of Michigan’s total GHG emissions. The Roadmap set a goal of generating 60 percent of the state’s electricity from renewable resources, as well as limiting the consumer cost of powering and heating homes to not more than six percent of annual income for low-income households. The budget included the following investments related to the energy sector (many of which overlap with other sectors):
Electrify Vehicles and Increase Public Transit
As of 2019, Michigan’s transportation sector accounted for almost 28 percent of the state’s total GHG emissions. The Roadmap calls for the infrastructure necessary to support two million electric vehicles on Michigan roads by 2030, along with increasing access to clean transportation options – including public transit – by 15 percent a year. The budget included the following for the transportation sector:
Repair and Decarbonize Homes and Businesses
As of 2019, Michigan’s built environment, mainly homes and businesses, accounted for almost 18 percent of the state’s total GHG emissions. The Roadmap includes strategies for reducing emissions from heating Michigan homes and businesses by 17 percent, along with increasing investments in building repair and improvement to lower costs for working families and small businesses. The budget included the following for the built environment:
Drive Clean Innovation in Industry
As of 2019, Michigan’s industrial sector accounted for 15 percent of the state’s total GHG emissions. The Roadmap includes recommendations to encourage clean innovation hubs, triple Michigan’s recycling rate, and cut food waste in half. The budget included the following industrial decarbonization efforts:
Protect Michigan’s Land and Water
In 2019, agriculture and working lands accounted for nine percent of the state’s total GHG emissions. The Roadmap includes goals of protecting 30 percent of Michigan’s land and water and leveraging innovative strategies to support climate-smart agriculture. The budget included the following natural and working lands efforts:
Commit to Environmental Justice and Pursue a Just Transition
The Plan prioritizes environmental justice (EJ) as necessary to drive better health outcomes, good jobs, and economic prosperity for all Michiganders. The Roadmap includes goals to ensure that at least 40 percent of state funding for climate-related and water infrastructure initiatives benefits disadvantaged communities and that Michigan fosters a just transition for all workers through proactive engagement, job training, and workforce development. The budget included the following for just transition efforts:
Making Communities More Resilient to Climate Impacts
While the MHCP is a climate mitigation and greenhouse gas reduction plan, not a comprehensive plan to adapt and become resilient to the effects of climate change, the state continues to support residents and communities in adapting to the climate impacts we are already facing, especially those in historically disadvantaged and underserved communities. The budget included: