Frey Signs Agreements with Xcel, CenterPoint to Cut Carbon Emissions and Ensure Equity

Minneapolis took a major step toward its goal of carbon neutrality by 2050 as Mayor Jacob Frey signed two franchise agreements with Xcel Energy and CenterPoint Energy on Friday, Feb. 14, 2025. The agreements, signed in the City Hall rotunda in the presence of nine city leaders and community organizers, mark a significant milestone in the city’s fight against climate change and push for sustainability.

The move builds on the city’s Climate Equity Plan, unanimously passed by the Minneapolis City Council in 2023. The plan aims to reduce climate pollution drastically by 2030 and set the city on a path toward full carbon neutrality by mid-century. The agreements with Xcel Energy, one of the region’s largest utility providers, and CenterPoint Energy will help deliver the infrastructure and support needed to meet these ambitious targets.

“Now, going forward, Minneapolis is leading the nation in decarbonization and climate resiliency, which is even more important now that the federal administration has a ‘Drill, Baby, Drill’ approach we will not be taking here in Minneapolis,” said Seventh Ward Council Member Katie Cashman. Representing the city’s western edge, Cashman emphasized Minneapolis’ commitment to prioritizing climate solutions that protect both residents and the planet.

A Path Toward Clean Energy

The franchise agreements establish a legal framework for Xcel and CenterPoint to continue serving Minneapolis while aligning their operations with the city’s climate goals. The partnership will focus on:

• Expanding renewable energy sources
• Enhancing energy efficiency
• Accelerating the transition away from fossil fuels

As Minneapolis faces increasing climate challenges—including extreme weather events and rising temperatures—the agreements represent a strategic effort to build resilience and protect vulnerable communities.

Centering Equity in Climate Action

Community organizers, particularly those advocating for environmental justice, played a key role in the agreement’s development. They stressed the importance of equitable climate policies, ensuring that low-income and marginalized communities benefit from the transition to clean energy.

Under the Climate Equity Plan, the city has pledged to involve these communities in decision-making, prioritizing inclusive solutions that address systemic disparities in energy access and affordability.

Minneapolis as a National Leader

With these agreements, Minneapolis continues to position itself as a leader in sustainability, setting a precedent for cities nationwide. The city’s determination to advance climate resilience demonstrates the power of local governments to drive meaningful change despite shifting federal policies.

As Minneapolis moves toward its 2050 carbon neutrality goal, its collaboration with Xcel and CenterPoint will be crucial in fostering a cleaner, more sustainable future for all residents. The city remains committed to exploring innovative policies and solutions to address climate change head-on—ensuring that environmental progress remains a collective effort between government, business, and the broader community.