New York Governor Kathy Hochul unveiled plans to invest more than $1 billion aimed at decarbonizing the state’s economy. Announced at Hochul’s 2025 State of the State presentation, the Governor’s planned investments cover areas including expanding renewable energy and supporting low carbon buildings and transportation.

Hochul’s planned climate investments also include exploring the acceleration of advanced nuclear energy technologies, with the Governor noting in particular a need to address the growing energy usage and associated emissions impact of computing needed to power AI.

As part of the plans to advance nuclear energy, Hochul said that the state will support an application by Constellation Energy in in pursuing federal planning grant funding to explore bringing small modular reactors online. New York also plans to develop a “Master Plan for Responsible Advanced Nuclear Development” to guide future nuclear projects.

The State of the State presentation also suggested that New York may push out the implementation of its “cap-and-invest” plan. Unveiled by Hochul in 2023, the initiative would require large greenhouse gas emitters and fuel distributors in New York to pay more than $1 billion per year to purchase allowances for the emissions associated with their activities, based on an economy-wide emissions cap, which would be reduced every year, on a trajectory aligned with the state’s Climate Act, with proceeds used to fund emissions reduction initiatives and support vulnerable communities facing rising energy prices.

While not providing extensive details on the cap-and-invest program, Hochul said that the Department of Environmental Conservation (DEC) and New York State Energy Research and Development Authority (NYSERDA) will continue working towards implementation, including proposing new reporting regulations to gather information on emissions sources, noting that the work will “create more space and time for enhanced engagement and public input.”

Additional areas of investment highlighted in the presentation include retrofitting homes, incentivizing the installation of heat pumps, decarbonizing college campuses through electrification, integration of clean energy technologies and adopting thermal energy networks, directing state agencies to enter into contracts for at least 500 MW of renewable energy, and expanding green transportation options across the state.

Hochul said:

““This historic $1 billion climate investment is not just a commitment to sustainable energy, it is a commitment to New Yorkers — creating thousands of jobs, cutting energy costs, and reducing harmful pollution. Together we are driving forward with innovative technologies to achieve our decarbonization goals while ensuring economic growth.”