Washington Proposes Linkage of Carbon Market with California and Quebec by 2027
Washington's Department of Ecology has released a draft agreement to link its cap-and-trade program with California and Quebec. Public feedback is open until May 1, with a potential start date in 2027. This linkage aims to stabilize decarbonization costs, allowing joint auctions and trading of carbon allowances across the states. Washington's emissions reduction targets include a 45% decrease by 2030 compared to 1990 levels, while California and Quebec aim for 40% and 37.5% reductions, respectively. Governor Bob Ferguson supports the initiative for enhanced emission reduction progress.
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Washington is working to link its cap-and-trade program with California and Quebec, potentially starting in 2027. The Department of Ecology has issued a draft linkage agreement, inviting public feedback until May 1.
The linkage aims to stabilize decarbonization costs and allow joint carbon allowance auctions. Washington's law mandates a 45% reduction in greenhouse gas emissions by 2030 from 1990 levels, while California and Quebec have targets of 40% and 37.5%, respectively.
Washington's carbon auctions have raised over $4 billion since their inception. Critics argue that the timeline is unreasonable, though many support the linkage for its potential to reduce market volatility.
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