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State of Washington to keep cap-and-invest program in place

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On 5 November 2024, voters in the US state of Washington rejected a measure that would have repealed Washington’s Climate Commitment Act and dismantled the state’s cap-and-invest program, reaffirming the state’s commitment to its landmark climate legislation. 

Washington’s cap-and-invest program, covering approximately 70% of the state’s emissions, began operating in January 2023 as part of the Climate Commitment Act. In January 2024, a citizen-driven initiative process was certified by the state government, aiming to repeal the program. This initiative, titled Initiative 2117, aimed to prohibit state agencies from implementing any form of “carbon tax credit trading”, including “cap and trade” or “cap and tax” programs, thereby repealing the creation and modification of a “cap and invest” program to reduce greenhouse gas emissions by specific entities. With over 3.5 million ballots cast, more than 62% of voters opposed Initiative 2117, decisively preserving the cap-and-invest program.

The decision came on the same day voters elected Democratic candidate Bob Ferguson as Washington’s next governor. Ferguson will replace Jay Inslee, a Democrat who has served as the governor of Washington since 2013.  Ferguson is an advocate for climate action and has publicly emphasized the Climate Commitment Act as both beneficial for the climate and for creating jobs.

With the Climate Commitment Act and the cap-and-invest program now secured, the Washington Department of Ecology is expected to continue its rulemaking processes to link the state’s carbon market with those in California and Québec. The California cap-and-trade program and the Québec cap-and-trade system recently celebrated ten years since their linkage.

The vote indicates strong public backing for Washington’s climate policies as the state moves forward with plans to complete a final evaluation of the linkage criteria in the Climate Commitment Act, conduct an Environmental Justice Assessment, and seek public input – steps necessary for finalizing the linkage agreement with California and Québec, which is expected by late 2025.

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