Washington links carbon market with California and Quebec, creating largest subnational carbon market

Washington state has signed a formal agreement to link its Cap-and-Invest carbon market with the existing markets in California and Quebec. The deal, signed by Ecology Director Casey Sixkiller in Seattle, creates the largest subnational carbon market in the world according to Governor Bob Ferguson. This linkage allows Washington to accept allowances and offset carbon credits from the other two jurisdictions, expanding the pool of available compliance options for businesses across all three regions. The agreement has been several years in the making and sets new precedents for greenhouse gas reductions and clean energy investments. By linking markets, Washington aims to increase liquidity and reduce compliance costs while maintaining environmental integrity. The move aligns with similar efforts in other regions to create larger, more efficient carbon markets that can drive deeper emissions cuts.