Washington’s Carbon Auction Proceeds Surpass $3 Billion

The Washington Department of Ecology on June 11 reported that all available emissions allowances were sold in the state’s tenth quarterly carbon auction, reinforcing the program’s stability and effectiveness. With this auction, total revenue generated for climate-focused initiatives has now reached nearly $3.2 billion since the program was launched in early 2023. The latest auction alone raised an estimated $322 million for the state, along with $126 million for electric utilities to support ratepayer assistance.
The Cap-and-Invest program functions by setting a declining cap on statewide emissions and requiring major polluters to either purchase allowances to cover their emissions or cut pollution. Over time, the cap tightens as fewer allowances are released, incentivizing long-term emissions reductions.
In this auction, current vintage allowances, usable immediately, settled at $58.51 per ton, a 17 percent increase from the March auction, which cleared at $50. Future vintage allowances, which cannot be used until a later compliance year, sold for $26.61, reflecting consistent market confidence. The current auction offered 2024 and 2025 vintage allowances totaling about 6.8 million and the advance auction offered 2028 vintage allowances totaling 2 million.
Governor Bob Ferguson hailed the results as a sign of steady progress, emphasizing the program’s role in countering federal rollbacks on climate protections.
With ten successful auctions completed, Washington is preparing to link its market with California and Québec. A joint carbon market would allow for combined auctions and a larger trading pool, reducing volatility and expanding compliance flexibility. The state expects to finalize the linkage process by 2026 or 2027.
Revenue from Washington’s auctions is earmarked for a wide range of projects, including clean transportation, community climate resilience, and pollution reduction, underscoring the policy’s dual role in curbing emissions and funding statewide climate solutions.
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