Washington State has officially linked its cap-and-trade program with California and Quebec, creating a unified carbon market across the three jurisdictions. This move expands the existing Western Climate Initiative (WCI) framework and allows Washington entities to trade allowances with participants in California and Quebec. The linkage aims to increase market liquidity and reduce compliance costs while maintaining emissions reduction targets. For market participants, this means more options for buying and selling allowances, which could lower the cost of compliance for covered entities. The combined market covers a significant portion of the West Coast economy and sends a signal that subnational carbon pricing continues to expand even without federal action. The article from Energy Intelligence provides details on how the linkage was structured and what it means for allowance prices going forward.
