Washington State, California and Québec advance carbon market linkage talks
On 23 September 2024, Washington State’s Department of Ecology released a second joint statement with California and Québec, updating the public on their progress towards linking their carbon markets.
This announcement aligns with the Climate Commitment Act, which directs Washington State’s Department of Ecology to explore linking its Cap-and-Invest program with other jurisdictions. California and Québec have successfully operated a linked carbon market for over a decade, prompting Washington to pursue linking discussions with the two jurisdictions.
All three jurisdictions are currently engaged in rule-making processes as part of the linking discussion. California and Québec are considering reforms to their Cap-and-Trade regulations to ensure the achievement of their 2030 greenhouse gas emissions reduction targets and advance their carbon neutrality goals. After this process, California and Québec can proceed with steps to link with Washington, including implementing regulatory changes to recognize compliance instruments from Washington’s program.
Meanwhile, Washington is aligning its Cap-and-Invest regulations with those of its potential partners. Before signing a linkage agreement, Washington must complete a final evaluation of the linkage criteria in the Climate Commitment Act, conduct an Environmental Justice Assessment, and seek public input.
As technical work on linkage continues, attention is focused on the upcoming vote on a ballot measure on Washington Initiative 2117, which proposes repealing the Cap-and-Invest system. The vote will take place on 5 November 2024, alongside the US Presidential Election. If the initiative is rejected and the program continues, the linkage agreement is expected to be finalized by late 2025.
