Colorado Expands GHG Credit Trading Program as More States Adopt Carbon Markets in 2026

Colorado held its second annual greenhouse gas allowance auction, expanding its GHG credit trading program that covers gas distributors and industrial emitters over 25,000 tonnes per year. The program uses both intensity-based and mass-based reduction standards, with midstream oil and gas entities required to join in 2028. Credits trade only within the state, ensuring local emissions reductions. Nationally, several states advanced carbon markets in 2026. Virginia rejoined RGGI after a court ruling, California extended its cap-and-trade through 2045, and Washington, California, and Quebec agreed to link their markets by 2027. New York is developing its own cap-and-invest program, though rollout has slowed. These moves signal growing momentum for state-level carbon pricing across the U.S.