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The concurrent public health, economic and fiscal crises serve as stark reminders of the need to prepare for the future and potential risks. That’s why it’s necessary for New York State to continue working to meet the ambitious long-term goals set in the Climate Leadership and Community Protection Act (CLCPA). One way to do so is to make cost-effective state spending policy choices that support, rather than undermine, efforts to achieve greenhouse gas emission reduction.

The state’s fiscal policies influence investments — not just in government but also in the private sector. The state spends its own budget, provides local governments with funds to spend, and has tax incentives that drive private spending one way or another and more. Aligning those policies with environmental goals can save money and fight climate change.

Yet the state has numerous fiscal policies that encourage fossil fuel consumption. In our recent report “Aligning Crossed Policy Wires,” our two groups identified numerous policies that New York should reconsider. Not all of them can be changed immediately. But baking our environmental goals into our fiscal policy choices can be a cost-effective driver of how quickly localities and the private sector change their own practices to achieve economy-wide carbon-neutrality by 2050.

Despite ambitious renewable energy production goals, the state has tax policies that currently make using fossil fuels cheaper. New York could limit its sales tax exemptions on residential energy, which currently apply to fossil fuels, to zero-emission fuels and renewable energy sources. The state could also tailor existing tax incentives to incorporate renewable energy; economic investment tax credits could exclude heating systems that rely on fossil fuels. Decisions need to be carefully considered for their full economic impacts, but these types of adjustments could possibly save the state more than $800 million per year.

The state must also lead by example. New York spent $200 million on utilities, such as heating and cooling, in fiscal year 2019. It could transition buildings with aging heating systems away from fossil fuels where cost-effective. Converting the 7,000 government fleet to electric vehicles and building charging infrastructure would accelerate the transition to clean transportation and lower maintenance costs.

The CLCPA sets aggressive goals that will profoundly affect how New Yorkers heat their homes, travel and get their electricity. The state should align spending decisions and tax policies that work at cross purposes with the CLCPA’s goals to advance all New Yorkers towards a clean energy future.