California to Issue $1B Green Bonds to Power Long-Term ESG and Carbon Neutral Strategy Goals

The California Community Choice Financing Authority (CCCFA) is set to issue $1 billion in green bonds to finance a 30-year supply of renewable and carbon-free energy for San Diego Community Power (SDCP), marking a major milestone in the state’s push to advance its ESG objectives and long-term carbon neutral strategy. 

Formally titled the Clean Energy Project Revenue Bonds, the funds will be used to prepay for emissions performance standard (EPS)-compliant clean energy under an agreement with Energy Prepay III, a subsidiary of Morgan Stanley Capital Group. The initiative is designed to deliver stable, long-term access to renewable power sources, contributing to California’s decarbonization and energy resilience goals. 

The 2025D Green Bonds are expected to be delivered the week of July 14, with maturity dates spanning from 2030 to 2034, and a final term bond maturing in 2055. Morgan Stanley will underwrite the offering, which is backed by revenue from SDCP’s Clean Energy Project. 

Currently, SDCP services over 956,000 active accounts, representing about 7.7 million megawatt-hours of annual energy sales. The project has earned an A2 rating from Moody’s, signaling strong financial backing and confidence in the long-term sustainability of the clean energy supply. 

This bond issuance supports California’s broader strategy to decarbonize its power grid, strengthen climate resilience, and scale ESG-aligned infrastructure investments. By locking in clean energy for three decades, the state sets a precedent for innovative green financing models that other U.S. jurisdictions may follow. 

With growing demand for sustainable financing and energy security, the CCCFA green bond project underscores California’s leadership in driving climate-smart infrastructure and achieving its carbon neutral targets through public-private collaboration. 

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https://esgnews.com/california-to-issue-1b-green-bonds-for-30-year-clean-energy-supply/