Results were released today for Washington’s second cap-and-invest auction of the year, administered last Wednesday by the Department of Ecology (Ecology). During the auction, participating entities submitted their bids for allowances. Under the Climate Commitment Act — Washington’s landmark climate law that sets a binding, declining limit on pollution — major emitters in Washington are required to hold one allowance for every ton of greenhouse gas they emit, with the total number of allowances decreasing each year. This system requires Washington’s polluters to reduce their emissions in line with the state’s climate targets, as fewer allowances become available annually.
June auction results
- All 4,600,000 current vintage allowances offered for sale by Ecology were purchased, resulting in the 10th consecutive sold out quarterly auction.
- All 2,000,000 future vintage allowances offered for sale by Ecology were purchased. These allowances can be used for compliance starting in 2028.
- The current auction settled at $58.51, $32.66 above the price floor of $25.85 and $8.51 above Washington’s last quarterly auction price of $50.00.
- This auction is projected to generate roughly $322 million in revenue, which will be invested into Washington communities to enhance climate resilience, create jobs and improve air quality. A report from Ecology confirming the amount of revenue raised in this auction will be published on July 2.
Investing in climate solutions
Revenue from Washington’s cap-and-invest auctions drives both the state’s climate goals and its economic growth, funding transformative projects that cut emissions, enhance climate resilience and improve public health. The nearly $3.19 billion in revenue generated over Washington’s past 10 auctions will be invested in critical projects in communities all across the state, including electrified public transportation, expanded renewable energy infrastructure, wildfire prevention and air quality improvements. The Climate Commitment Act also ensures that a significant portion of these funds directly benefits communities that are the most overburdened by the climate crisis.
With each auction, Washington secures additional resources to tackle the climate crisis while fostering job creation and economic opportunity statewide. And with ten auctions now under its belt, this popular program is continuing to deliver meaningful benefits to Washingtonians.
Looking ahead
Washington’s cap-and-invest program is now midway through its third year, with strong public support for the system and strong market demand. The state has continued to make progress this year towards market linkage with the California-Quebec program, which remains a promising opportunity to further enhance market stability and reduce regional emissions. The Climate Commitment Act was designed to be compatible for linkage with California and Quebec — and leaders in all three jurisdictions have expressed their interest in exploring linkage.
With this next step on the horizon, these three jurisdictions have the opportunity to strengthen their programs and demonstrate the power of regional cooperation in tackling climate change — which is needed more than ever in the face of federal attacks on climate policy.