Annual report shows progress toward MI Healthy Climate Plan goals

Electric buses carrying students to school, farmers rebuilding soil health, communities cutting energy bills, and a clean energy transition focused on good-paying jobs: These are some of the successes and priorities captured in the 2025 MI Healthy Climate Plan Report, a snapshot of how Michigan is leveraging resources to turn forward-thinking ambition into everyday action.

The MI Healthy Climate Plan is the state's roadmap to a prosperous, sustainable future for all Michiganders. Launched in April 2022, the plan aims to reduce greenhouse gas (GHG) emissions while protecting public health, strengthening communities, and ensuring the transition to clean energy is fair and affordable. Each year, the Michigan Department of Environment, Great Lakes, and Energy (EGLE) reports to the Governor on progress. The 2025 report shows a state continuing to move from planning to implementation.

Through programs and resources like Catalyst Communities, Michigan Green Communities, and the Michigan Climate and Health Adaptation Planning Guide, state departments and partners continued to work with local governments and communities across the state to support sustainability goals and align priorities around the Plan.

“This report reminds us of the importance of our work as Michiganders to avert the worst impacts of climate change and become more resilient,” said EGLE Director Phil Roos. “Our investments and initiatives for a clean, sustainable, energy-efficient future will continue to pay real-world dividends – better air quality, affordable utility bills, good jobs, and more – for ourselves and future generations.”

EGLE finalized the state’s most recent GHG inventory, which included data from 2021, and found that emissions have dropped by about 20% since 2005 – a milestone on the way to the Plan’s goals of a 52% reduction by 2030 and carbon neutrality by 2050.

In 2025, Michigan expanded grant programs supporting renewable energy, energy storage, electric vehicles (EV), energy efficiency for residential and commercial buildings, recycling, food waste reduction, and workforce development. From urban neighborhoods to rural townships, communities are tapping into new resources to modernize infrastructure, cut pollution, save money, and build a sustainable and prosperous economy.

The MI Healthy Climate Challenge launched as a series of grant competitions continuing this year to drive clean energy deployment and unlock investments across Michigan. The Unlocking Elective Pay Challenge – launched in August in partnership with the Michigan Infrastructure Office Technical Assistance Center to help tax exempt entities across Michigan access federal clean energy tax credits – announced its awards last month.  

Applications are open through March 22 for the new Growing Green Lending Challenge. It offers up to $500,000 to develop and deploy strategies that help community lenders statewide expand accessible and affordable clean energy financing.

Also making a difference is the Renewables Ready Communities Award program, which provides flexible incentives to local governments that host large-scale wind, solar, and battery storage projects. These incentives can be used for community improvements such as road repairs, fire department upgrades, park enhancements, and energy-efficient building renovations. By September 2025, the program had awarded more than $26 million to 43 communities across both peninsulas, supporting enough clean energy projects to power more than five million households. The state will expand the program with a $129 million grant from the U.S. Environmental Protection Agency (EPA).

And EGLE finalized Michigan’s Comprehensive Climate Action Plan in 2025 as part of the EPA’s Climate Pollution Reduction Grant program, providing detailed analysis and strategies to reduce GHG emissions across all sectors.

In transportation, Michigan’s electric and plug-in hybrid vehicle numbers more than doubled between 2023 and 2025, and charging infrastructure expanded dramatically, with thousands of new charging ports. Federal investments through the National Electric Vehicle Infrastructure program, combined with state grants, are helping expand transportation options.

The EPA Clean School Bus Program (CSBP) has awarded Michigan tens of millions of dollars since 2022 to deploy hundreds of electric buses statewide, and the Michigan Department of Education’s $125 million Clean Bus Energy Grant (CBEG) program has awarded more than $81 million to date. Applications closed in December for a final grant round. Nearly 900 school buses across multiple districts are now low- or zero-emission vehicles, turning cleaner mobility into a daily routine.

Homes and buildings, responsible for about one-sixth of Michigan’s GHG emissions, are also getting attention. The report highlights Michigan’s leadership in energy efficiency, with programs that are expected to cumulatively save residents billions of dollars over time. Programs like the MI Home Energy Rebates (MiHER) initiative and expanded weatherization assistance are helping residents lower utility bills, improve indoor air quality, and reduce energy use. For low-income households, where energy costs can consume a disproportionate share of income, these upgrades are especially important. MiHER aims to upgrade energy efficiency and electrification for 15,000 homes.

In other focus areas, Michigan added 1,698 megawatts (MW) of renewable energy in 2024 , with capacity projected to reach 17,800 MW by 2030 as renewable energy expands to meet the standards set in Michigan’s energy laws and commitments made in utility resource plans. And the state’s recycling rate rose to 25%, supported by $5.6 million in Circular Economy Grants and the NextCycle Michigan accelerator.

Climate action in Michigan is also about people. The MI Healthy Climate Fellows program places specialists – many of them early-career professionals – with local governments, nonprofits, universities, and community organizations to build capacity for climate action. In 2025, 31 fellows worked across the state, helping communities plan renewable energy projects, engage residents, and coordinate local climate strategies. Their work reflects a broader focus on environmental justice and a just transition. A third cohort began its 11-month term of service with 15 organizations in January.

Speaking of environmental justice, Michigan’s MI Healthy Climate Justice Accelerator program supported 25 community organizations in 2025, facilitating $4.5 million in grant funding and technical assistance. The program has been extended to 2026.

Natural and working lands play a vital role in climate action. Michigan’s forests, wetlands, and farms absorb millions of tons of carbon dioxide each year. In 2025, the Michigan Department of Agriculture and Rural Development and the Michigan Department of Natural Resources expanded regenerative agriculture programs, urban forestry grants, and conservation initiatives under the Michigan the Beautiful effort to conserve 30% of the state’s land and water by 2030. These investments help fight climate change while preserving the landscapes and waterways that form Michigan’s identity.

The report also highlights strong coordination across state agencies, including plugging orphan oil and gas wells to reduce methane leaks, improving recycling systems, and planning for climate-resilient infrastructure. EGLE’s Office of Climate and Energy, led by Chief Climate Officer Alessandra Carreon, serves as the hub for this statewide effort.