California and Washington are moving to link their cap-and-trade programs, a step officials say will cut an additional 45 million metric tons of CO2 through 2045 and generate billions for state programs. The joint auctions are targeted for 2027, expanding the existing California-Quebec market. Governor Newsom announced the move during Climate Week, framing it as a state-level response to federal rollbacks on emissions rules. The program forces major polluters to pay for each ton of carbon they emit, with allowances traded quarterly. California's program has raised over $36 billion since 2013, funding housing, wildfire resilience, and transit. Estimates suggest the link could deliver $10 billion in electricity bill credits and $8 billion to the state's climate fund by 2030. Environmental groups back the move, though some critics warn about new manufacturing incentives that could allow more pollution.
