Washington state has completed its rulemaking to link its carbon market with California and Quebec, bringing the three jurisdictions one step closer to full integration in 2027. California Governor Gavin Newsom announced his authorization during Climate Week in New York, while Washington officials finished their part of the process. The final hurdle is regulatory changes by California and Quebec before the merger can take effect. The linkage aims to stabilize allowance prices that have swung dramatically in Washington's five-year-old market, from a peak of $70 per ton in December 2025 to $39 in its most recent auction. California-Quebec allowances have been steadier at around $32. Supporters argue a combined market will reduce compliance costs, attract investment, and create a more predictable price signal for emissions. Washington has already raised over $5 billion from its auctions since 2023, revenue that could become more reliable under the linked system.
