Last week, the Washington State Department of Ecology (Ecology) released results of its tenth auction of greenhouse gas emissions allowances as part of its Cap-and-Invest Program to reduce climate pollution. The auction sets an annual cap on greenhouse gas emissions and gives businesses the option to compete for a limited number of allowances to cover the carbon dioxide they release into the atmosphere. Ecology lowers the cap over time by reducing the number of allowances auctioned. Since the program started in 2023, it has raised more than $3B for climate initiatives.
Washington reportedly is on track to meet state limits on greenhouse gas emissions and is generating revenue for investments in clean transportation, making communities more resilient to climate impacts like extreme heat and flooding.
“We’re seeing strong participation and price stabilization,” said Ecology Director Casey Sixkiller. “We expect that trend to continue as we move toward linking markets with California and Québec. By forming a larger shared market, we can show others how states and local leadership can have a global impact.”
Washington expects to be able to link in 2026 or 2027, which would create a larger market less susceptible to price swings. Ecology notes that Oregon is currently considering a cap-and-invest program, and New York is already developing one.
