Washington, California, and Québec signed an agreement to link their carbon markets, aiming to create the largest subnational carbon market in North America by 2027. The pact outlines how the three governments will jointly run permit auctions, track emissions credits across borders, and enforce market rules. California and Québec have already operated a joint market for over a decade, and Washington has been preparing to join since launching its own cap-and-trade program in 2021. Washington Governor Bob Ferguson framed the linkage as a counterweight to federal climate rollbacks under the Trump administration. The agreement is a formal step but does not immediately link the programs; each government still needs to complete its own regulatory process. If finalized, the combined market would cover a significant portion of the U.S. and Canadian economies, potentially increasing liquidity and price stability for carbon allowances.
