Climate 411

What Washington state can learn from California’s decade of climate investments

By Guest Author / Published: June 30, 2023

This blog was authored by Delia Novak, Western States Climate Policy Intern, U.S. Region.

Since the launch of Washington’s cap-and-invest program in January, the state has raised over $850 million in revenue through two consecutive, sold-out auctions under the program. These cap-and-invest auctions provide critical funding for the clean energy and climate resilience projects that will lock in a swift transition to a healthier, safer climate future — with at least 35% of funding used to benefit communities that are overburdened by air pollution and who will be impacted first and worst by the climate crisis if we fail to act.

Last month, Governor Inslee signed Washington’s final budget for 2023-2025, which will make use of a whopping $2 billion in funding from the Climate Commitment Act (CCA), with highlights including $138 million for electric vehicle charging infrastructure, $123 million for solar and storage projects, $120 million for zero emission medium and heavy-duty vehicles, and $163 million for home electrification rebates. By making decarbonization more affordable and slashing climate-warming emissions, this funding is already an impressive indication of the opportunities and investment that the cap-and-invest proceeds will deliver to communities across Washington.

But Washington’s climate investments are just getting started. In the meantime, we can look to California’s decade of climate investments to understand the important benefits that Washington’s cap-and-invest program can provide for its communities.

Also posted in Carbon Markets, Cities and states, Economics, Energy, Greenhouse Gas Emissions, Health, Jobs, News, Policy / Comments are closed

California and Quebec have a major opportunity to raise the ambition of their linked carbon market

By Caroline Jones / Bio / Published: June 12, 2023

When the California Air Resources Board (CARB) finalized its Scoping Plan last year, it marked a critical milestone in charting an ambitious – but achievable – path toward a safer, climate future for communities across the state. Now, it’s time for CARB to put that plan into action.

The good news is that air regulators are taking a key step forward with a new joint workshop between California and Quebec on June 14 that will focus on potential amendments to the linked cap-and-trade program. The workshop will discuss the status of the current regulation and, critically, the scope of potential updates to bring the regulation in line with CARB’s 2022 Scoping Plan, which sets a goal of 48% emissions reductions by 2030 – an essential target to ensure California reaches its long-term reduction goals.

Also posted in Carbon Markets, Cities and states, Economics, Greenhouse Gas Emissions, News, Policy / Comments are closed

Washington state’s second cap-and-invest auction shows strong demand

By Caroline Jones / Bio / Published: June 7, 2023

Photo Credit: Wendy Olsen Photography

Blog co-authored by Kjellen Belcher, Manager, U.S. Climate

Today’s results from Washington’s second cap-and-invest auction – most notably selling 100% of allowances – continue to signal strong demand for allowances and confidence in the program, bringing significant revenue for the state to reinvest in Washington communities. This is only the second auction held for the cap-and-invest program, following on a strong debut auction which also sold-out and raised almost $300 million in revenue which will be put towards efforts to further decrease Washington’s climate pollution and increase resilience to climate change.

Also posted in Carbon Markets, Cities and states, Economics, Energy, Greenhouse Gas Emissions, Policy / Read 3 Responses

The lowdown on linkage: Why Washington and California should link their carbon markets

By Caroline Jones / Bio / Published: June 1, 2023

It’s been two months since the debut auction of Washington’s cap-and-invest program — the nation’s most ambitious climate program to date — which puts a firm, declining limit on climate pollution across the state’s economy. Since then, state leaders have turned their attention to the next major decision facing the program: whether to link up Washington state’s carbon market with California-Quebec’s market, a.k.a. “Linkage.” Put simply, linkage refers to joining carbon pricing systems — like cap-and-invest or cap-and-trade systems — across borders, whether those borders are state or national. In a linked market, all participating jurisdictions pool their supply of allowances, and conduct shared auctions.

Washington’s Department of Ecology recently concluded their public comment period on the issue of linkage, the first step required for pursuing linkage as laid out by the state’s Climate Commitment Act, with a goal of linking Washington’s carbon market with the joint California-Quebec carbon market by 2025. After Washington decides whether or not to pursue linkage — likely later this summer — California and Quebec will need to undertake their own processes to decide whether to link.

Washington, California and Quebec have a lot to gain from linkage. It can drive deeper cuts in climate pollution, lower prices and increase the stability of the carbon market. The programs in these jurisdictions are already aligned in the central ways needed to function as a linked market — but to unlock the greatest benefits of linkage, leaders need to align key aspects of these carbon markets in their respective processes.

Here’s what you should know about linkage and four key opportunities Washington and California-Quebec have to align their programs.

Also posted in Carbon Markets, Cities and states, Economics, Energy, Greenhouse Gas Emissions, Policy / Comments are closed

Western Climate Initiative auction underlines upcoming opportunities to strengthen the program

By Caroline Jones / Bio / Published: February 23, 2023

Photo Credit: Canva

This blog was co-authored by Delia Novak, Western States Climate Policy Intern, U.S. Region

Results of the latest Western Climate Initiative auction were released today, and while the solid demand for allowances indicates a stable market, there are hints of uncertainty about next steps for the cap-and-trade program. Now that the California Air Resources Board has a new Climate Change Scoping Plan in place, the state has key opportunities this year to strengthen this marquee climate program and to consider joining forces with other states.

Also posted in Carbon Markets, Cities and states, Energy, Greenhouse Gas Emissions, Policy / Comments are closed

Strategies and Principles to Decarbonize Your Local Gas Utility

By Michael Colvin / Published: December 20, 2022

Photo Credit: Canva

This blog was co-authored by Jolette Westbrook, Director and Senior Attorney, Equitable Regulatory Solutions.

“What will it take to decarbonize the gas distribution system?” That was the key question that a group of stakeholders from the non-profit and utility sectors across the United States tried to answer over the last year. There are many changes required to decarbonize a system that is currently designed around the transport and distribution of a fossil fuel. So how do we do it?

In the first convening of its kind at a national scale, these stakeholders produced a new report setting out guiding principles and strategies to inform decarbonization of the gas utility and corresponding end uses. Despite uncertainties about particular technologies, fuels, and customer adoption, all of the roundtable stakeholders share the belief that urgent action is necessary. The report provides key considerations for policymakers and regulators on how to navigate this transition that will guide future utility investment and decision-making toward economy-wide decarbonization.

Also posted in Carbon Markets, Cities and states, Clean Power Plan, Energy, Greenhouse Gas Emissions, Policy / Comments are closed

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