Washington signs deal to link carbon market with California, Quebec

Washington has signed an agreement to link its carbon market with the joint program already operated by California and Quebec.

Supporters said the move will stabilize prices and cut pollution, but critics called it another burden on families already paying some of the highest gas prices in the country.

Department of Ecology Director Casey Sixkiller signed the linkage agreement at a Seattle ceremony on Thursday attended by Washington Governor Bob Ferguson, Quebec officials and legislative leaders. The linked market is expected to launch in 2027, when the three jurisdictions will hold joint pollution permit auctions.

“At a moment when the federal government is abandoning science-driven policy and climate leadership, Washington state is moving forward,” Ferguson said. “This agreement shows it’s possible to work together across borders to address the climate crisis.”

Critics say carbon market costs are hitting drivers at the pump

Washington’s Climate Commitment Act, passed in 2021, requires companies to buy permits for every ton of greenhouse gas they emit. Critics noted fuel distributors pass some of those costs on to drivers at the pump.

Lawmakers have appropriated roughly $4.7 billion in program revenue to date for clean energy, transportation and climate projects, according to a Washington Research Council analysis in April.

The price gap between the two markets is significant. Washington’s most recent auction in June settled at $64.56 per ton, according to the Washington Department of Ecology. The California-Quebec joint auction in May cleared at $28.81, according to the Western Climate Initiative.

Supporters said merging the markets will give Washington businesses access to a larger, cheaper pool of permits. But Republican lawmakers aren’t convinced relief will reach drivers.

“It’s been a train wreck since the beginning,” State Rep. Dan Griffey, R-35th District, told “The Jason Rantz Show” on Seattle Red 770. “It is absolutely pricing all Washingtonians over a cliff.”

Griffey, who represents rural Mason County, said the program disproportionately hits communities with no alternatives to driving.

“The rural community where I live, the 35th district, is paying for King County’s experiment once again, and we’re getting tired of it,” Griffey said.

California and Quebec must still complete regulatory changes before the linked market can take effect.

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