Washington Joins Carbon Market Linkage

Summary

• Washington, California, and Quebec have agreed on a framework for linking their carbon markets, with final regulatory steps still required in each jurisdiction.
• The linkage would join Washington’s cap-and-invest system to California and Quebec’s long-running shared market, creating a larger and more stable allowance pool.
• Washington’s carbon auctions remain active and sold out, indicating continued demand for allowances even as linkage planning advances.
• Officials and supporters say a broader market could reduce price volatility and make compliance planning more predictable for covered businesses.
• Revenue from allowance auctions is still expected to fund emissions reduction, resilience, jobs, and air-quality projects in Washington communities.
• The policy effort sits against a backdrop of reduced federal climate action and increased emphasis on state-led emissions programs.
• The topic also reflects wider uncertainty in state carbon pricing, with New York delaying its own program while other states consider similar measures.