The USD 2.5 billion, eight-year plan also involves the installation of 250,000 electric vehicle charging stations and 200 hydrogen fueling stations by 2025.
"To continue to meet California's climate goals and clean air standards, California must go even further to accelerate the market for zero-emission vehicles," the governor's office said in a statement.
The order aims to "dramatically reduce carbon emissions from transportation -- a sector that accounts for 50 per cent of the state's greenhouse gas emissions and 80 per cent of smog-forming pollutants," it added.
California, where the number of zero emissions vehicles has risen by 1,300 per cent in six years according to the order, will need to maintain similarly exponential growth to meet its latest goal.
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Currently, eco-friendly vehicle sales represent five per cent of sales in the state.
Two years ago, California also adopted a goal of cutting CO2 emissions to 40 per cent below the 1990 level by 2030.
The order also includes a USD 1.25 billion investment in California's own carbon market.