This week, Energy Innovation released a paper outlining recommended policy upgrades for California’s climate and energy policy. The paper, titled “Carbon-Free Prosperity in California: Policies for Success,” was written by Energy Innovation’s CEO, Hal Harvey, and Director of Research, Chris Busch.

California is engaged in a conversation about the future of climate and energy policy, spurred by the mid-course adjustment process of updating the Scoping Plan, as required every five years under AB 32, the state’s landmark climate law which sets an economy-wide limit on emissions. The state has many successes to celebrate. Its energy efficiency programs have been emulated throughout the U.S. and elsewhere around the world. The state’s performance standard for tailpipe emissions from cars and small trucks is now reflected in national law. California sailed past its 20 percent Renewable Portfolio Standard, and is on track to fulfill the 2020 requirement that 33 percent of the state’s electricity comes from renewables. The state is also well on the way to successfully achieving the necessary pollution reductions to meet AB 32’s 2020 cap on emissions, which was set to equal the state’s total emissions in 1990.

This is a cornucopia of good news. Yet, looking at the longer term vision more work remains. Consistent with scientific consensus, California has set a goal of reducing emissions 80 percent below 1990 levels by 2050. The implication is that emission reductions will have to start happening more quickly after 2020. Now is the time to get in place the next wave of policy innovation needed to put California on the correct trajectory to achieve this goal.

Energy Innovation’s new paper offers policy recommendations in five areas: the electricity sector, building sector, transportation sector, fracking and methane emissions, and spurring action in other states and countries. The paper’s recommendations build on the best research, such as a recent Science article by the analysts at E3 (Energy and Environmental Economics, Inc.). No one should doubt the challenges of transitioning to a low-carbon economy. Equally so, no one should doubt the opportunity, not only to provide the leadership needed to solve climate change, but also to build an economy and companies that can compete in a world of increasing environmental and resource limits.