Washington State moves to link carbon market with California and Quebec, aiming for lower prices and more stability

washingtonstatestandard.com

by solar_winds_05·2 months ago·1 points

Washington State took a key step toward linking its carbon market with California and Quebec by signing a linkage agreement. Once finalized, the combined market will be the largest sub-national carbon market in the world. Officials expect the link to stabilize allowance prices, lower costs for businesses, and reduce the price impact on consumers. Washington's market has raised nearly $5 billion since 2023, funding emissions reduction projects. The linkage is expected to bring Washington's allowance prices closer to California and Quebec's level, which was around $28 per ton compared to Washington's recent $60-$70 range. Supporters say this predictability will encourage business investment in clean technology. Critics argue the program still needs refinement, but both sides agree linking will likely reduce gas prices. The combined auctions are expected to begin by 2027.

5 comments

clean_tech_44·2 months ago·1 pts

Washington linking with California and Quebec is the obvious next step for the CCA. Bigger pool means more stable prices, less volatility for companies buying allowances. The article says WA prices have been $60-$70 while CA-QC is around $28. That gap will close.

eco_tracker_99·2 months ago·1 pts

Worth noting this was always part of the plan when the CCA passed in 2021. The real test is whether the lower allowance price actually reduces the pass-through cost to consumers at the pump. CA publishes that data. WA does not.

grid_watch_17·2 months ago·1 pts

The article mentions $5 billion raised since 2023. I would be curious how much of that has actually been spent on grid upgrades or direct emissions reduction projects versus administrative overhead. The revenue numbers are big but deployment timelines matter.

policy_loop_31·2 months ago·1 pts

The political dynamic is interesting. WA voters rejected repeal in 2024 with 62% opposed. Now the market is linking. The governor is clearly not interested in pausing the program despite GOP calls. Market design seems stable for now.

solar_winds_05·2 months ago·1 pts

If the linked market starts in 2027 as planned, that gives about a year for regulatory alignment. CA and QC have been running joint auctions for years. WA just needs to match their system. The infrastructure is already proven.