Cap-and-invest continues to be Washington’s best tool for cutting pollution and delivering investments to communities. As linking with the California-Quebec program comes closer to being a reality, the continued success of Washington’s program demonstrates how a larger, linked market will benefit all involved.
The program just completed its third auction of the year. Here are the results and what they mean:
As all California climate policy nerds know, things are heating up in Sacramento around the details for extending the state’s landmark cap-and-trade program. There are many ways in which the program can be strengthened to better align with the state’s emission reduction targets and address affordability challenges for working families, both of which are needed now more than ever.
However, a baffling new proposal would undermine the credibility of the program and abandon its track record of results by dramatically lowering the price ceiling for emissions allowances. If enacted, it would allow for unlimited emissions, make it a tossup if California meets its climate goals, and decimate the program’s ability to raise revenue for climate action. Let’s unpack why.
Results were released today for the third auction of the year in the California-Quebec cap-and-trade market. This auction delivered slightly stronger results over the May auction, with all current allowances sold and settlement prices rising above the price floor. This bump in market demand potentially suggests renewed market confidence, though this confidence could be temporary if the Legislature doesn’t act urgently to reauthorize the program.
New York just experienced a brutal heatwave, with several cities experiencing the hottest days ever recorded, underscoring the urgent need to address the climate crisis.
As temperatures heat up, so do energy prices as New Yorkers continue to struggle with higher cost of living and economic uncertainty. To make matters worse, across the country polluters and their political allies are working to stall progress and roll back the clock on climate action. In the face of those attacks, states must be the firewall.
New York has the chance to lead by example — tackling climate change while reducing costs for many New Yorkers and spurring economic growth — through the adoption of a bold, economy-wide cap-and-invest program.
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.
Results were released today for California’s second cap-and-trade auction of the year, and the first auction since Governor Newsom proposed extending California’s cap-and-trade program through 2045 as part of his May budget proposal. As California lawmakers consider the future of the cap-and-trade program, they face a pivotal opportunity to deliver real and lasting benefits to communities across the state. At stake is not only California’s continued leadership on climate, but also the potential to unlock major economic and affordability gains for Californians.
