Washington State Senate Passes Carbon Market Linkage Bill

Washington State Is Looking To Start Selling Carbon Credits - Carbon Herald
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The Washington State Senate successfully passed legislation on Monday aimed at bolstering efforts to integrate Washington’s cap-and-invest carbon market with those of California and Quebec.

Sponsored by Senator Joe Nguyễn (D-White Center), Senate Bill 6058 introduces a series of technical adjustments to the carbon markets, facilitating better alignment with the systems in California and Quebec. This legislative milestone marks a significant advancement for the cap-and-invest program established by the Climate Commitment Act of 2021.

The carbon market collaboration between Washington State, California, and Quebec is anticipated to yield substantial advantages for Washington’s carbon market. By tapping into a larger and more resilient market, it is anticipated that allowance prices will see a considerable decrease compared to the auctions of 2023.

Relevant: Washington State Passes Carbon Removal Funding In Capital Budget

“Joining forces with other states and governments in the fight against climate change is an important step forward in our work to reduce carbon pollution and support a green, sustainable economy,” Nguyễn said. “The Climate Commitment Act is playing a critical role for Washington’s clean energy future — investing in energy efficiency, protecting our environment, reducing pollution, and more — and linkage makes it work even better.”

Consequently, consumers can expect mitigated impacts on gas and energy prices. Moreover, this linkage would furnish businesses emitting carbon pollution with a sense of predictability and stability when participating in the auctions, thereby incentivizing the adoption of long-term emission reduction strategies.

These prospective benefits, among others, were delineated in the Department of Ecology’s October 2023 report assessing the ramifications of market linkage. This analysis played a pivotal role in the state’s decision to proceed with the plan and enact the accompanying legislation.

Read more: Washington Raises $300 Million From New Cap-and-Invest Market

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