Washington Voters Preserve Cap-and-Invest Program

Washington voters on Nov. 5 rejected Initiative 2117, a ballot measure that sought to repeal the 2021 Climate Commitment Act, which established the cap-and-invest program, a key component of the state’s efforts to achieve emission limits set in law and progress toward net-zero carbon emissions by 2050. Nearly 62 percent of voters cast ballots against the initiative, affirming public support for climate action and the state’s emissions-reduction targets.

The vote comes amid shifts in the program’s carbon market. At the latest auction held in September under the cap-and-invest program, allowance prices settled at $29.88 per allowance, above the floor price of $24.02. This is about half the price of the August 2023 auction, which cleared at $63.03. Prices have continued to decline since then likely influenced by uncertainty over the program’s future, which could now stabilize following voters’ endorsement.

Supporters argue the cap-and-invest model is essential for curbing emissions and fostering clean energy development in Washington. With this week’s vote, the state’s program remains intact, ensuring ongoing regulation of emissions from major polluters.

The market-based program sets a limit, or cap, on overall carbon emissions in the state, requiring businesses to purchase allowances equal to their covered greenhouse gas emissions. This cap is designed to decline over time, incentivizing companies to reduce emissions. Revenue generated by the program funds clean energy initiatives and climate resilience projects across Washington, supporting the state’s target of carbon neutrality by 2050.