California plans to link its cap-and-invest carbon market with Washington State, with the first joint auctions targeted for 2027. Governor Gavin Newsom announced the move during Climate Week and directed the California Air Resources Board to begin the public process. The two states join the existing California-Quebec market, letting covered companies buy and sell allowances across state lines. State officials estimate the linkage will generate about $10 billion in direct electricity bill credits and roughly $8 billion for California's Greenhouse Gas Reduction Fund through 2030. Environmental Defense Fund cites modeling from Greenline Insights projecting an additional 45 million metric tons of emissions cuts through 2045. California's cap-and-invest program has raised more than $36 billion since 2013, with proceeds going to housing, wildfire resilience, clean water, and high-speed rail. The announcement comes as the EPA rolls back power plant emissions limits and California fights federal efforts to revoke its vehicle emissions authority. Linking with Washington is part of a broader state-level push to keep carbon pricing in place despite federal rollbacks.
