Washington continues discussions on joining shared carbon market

In an effort to fight climate change and achieve promised cuts to greenhouse gas emissions, the Washington state Department of Ecology (DOE) is seeking to join California and Québec’s cap and trade carbon market, a process known as “linkage.”

In a September 23 joint press release, the DOE, along with the California Air Resources Board and the Québec environmental ministry, announced it was furthering discussions on joining a shared carbon market to help achieve its 2030 carbon emission goals. Washington state officials began taking steps to enter the California and Québec market last year.

All three governments use some form of cap-and-trade policies, where the government sets a limit on the total amount of pollutants allowed to be produced and private companies can buy and sell pollution allowances. The cap is reduced lower over time with the intent of achieving a zero-carbon marketplace.

California and Québec have been in a shared carbon market since 2014. The Climate Commitment Act (CCA), signed into law by Governor Jay Inslee in 2021, directed the DOE to find other carbon markets to share cap-and-trade policies, but a linkage agreement would likely take years, according to the press release.

Before a carbon market linkage can become official, Washington needs to jump through a few legal hoops, such as an environmental justice assessment, an evaluation of linkage criteria and public input.

“Climate change is an accelerating crisis that demands international cooperation,” the release stated. “We hope our efforts will strengthen the global community’s commitment to take action, including sending the necessary market signals for the private sector to invest and innovate in zero-carbon technologies and energy.”

While the slow process of linkage with California and Québec begins, the CCA faces a repeal measure, Initiative 2117, in the November 2024 general election.