{"id":24293,"date":"2024-09-11T14:57:55","date_gmt":"2024-09-11T19:57:55","guid":{"rendered":"https:\/\/blogs.edf.org\/climate411\/?p=24293"},"modified":"2025-12-02T15:25:43","modified_gmt":"2025-12-02T20:25:43","slug":"washington-states-landmark-climate-law-continues-to-build-a-greener-future-for-washingtonians","status":"publish","type":"post","link":"https:\/\/blogs.edf.org\/climate411\/2024\/09\/11\/washington-states-landmark-climate-law-continues-to-build-a-greener-future-for-washingtonians\/","title":{"rendered":"Washington state\u2019s landmark climate law continues to build a greener future for Washingtonians"},"content":{"rendered":"<p>Results were released today for Washington\u2019s third quarterly auction of 2024, administered last Wednesday by the Department of Ecology (Ecology). During the auction, participating entities submitted their bids for allowances. Under the Climate Commitment Act \u2014 Washington\u2019s landmark climate law which sets a binding, declining limit on pollution \u2014 Washington\u2019s major emitters are required to hold one allowance for every ton of greenhouse gas that they emit, with the total number of allowances declining each year. With fewer allowances available each year, this system requires polluters in Washington to reduce their emissions in line with the state\u2019s climate targets. Distributing allowances through quarterly auctions allows Ecology to both regulate harmful emissions and raise critical revenue to invest in frontline communities, ramp up clean job creation, bolster climate resilience, and accelerate further emissions reductions.<\/p>\n<p>Here are the results, <a href=\"https:\/\/apps.ecology.wa.gov\/publications\/documents\/2414050.pdf\" target=\"_blank\" rel=\"noopener\">released today<\/a>:<\/p>\n<p><!--more--><\/p>\n<h3>September auction results<\/h3>\n<ul>\n<li>All 5,260,000 current vintage allowances offered for sale by Ecology were purchased, resulting in the<strong> 7th consecutive sold out quarterly auction<\/strong>.<\/li>\n<li>The current auction settled at $29.88, $5.86 above the price floor of $24.02 and $0.04 below Washington\u2019s <a href=\"https:\/\/blogs.edf.org\/climate411\/2024\/06\/12\/despite-threat-of-repeal-washington-states-carbon-market-continues-to-raise-urgently-needed-revenue-for-communities-in-the-evergreen-state\/\" target=\"_blank\" rel=\"noopener\">last quarterly auction price of $29.92<\/a>.<\/li>\n<li>This auction is projected to generate roughly $157 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 October 2.<\/li>\n<\/ul>\n<h3>What factors may be at play with these results?<\/h3>\n<p>These results were very similar to the results we saw in the June auction, only declining four cents from last quarter. This stability may be encouraging for market participants, who are still contesting with external uncertainty around the program due to the looming threat of program repeal posed by Initiative 2117 (I-2117), one of several ballot initiatives backed by a wealthy hedge-fund executive which seeks to fully repeal the cap-and-invest market. This was the final auction held before voters go to the ballot box in November to decide, among other things, on the future of this landmark climate program and the uncertainty created by the risk of the program being terminated could be impacting the market. If I-2117 succeeds in November, resulting in program repeal, it would be a huge blow to Washington communities, who are just starting to see the benefits that this program delivers \u2014 including improved air quality from reduced pollution, and investment of auction revenue into clean jobs, climate resilience and wildfire prevention.<\/p>\n<p>While the potential for program repeal remains up in the air, the Department of Ecology continues to pursue program linkage between Washington\u2019s market and the joint California-Quebec market, known as the Western Climate Initiative (WCI). The state has been taking steps toward linkage all year, including passing a law to further align the programs, and holding public workshops over the summer for a rulemaking on linkage. <a href=\"https:\/\/blogs.edf.org\/climate411\/2022\/07\/20\/why-linking-carbon-markets-boosts-climate-and-economic-benefits-for-us-states\/\" target=\"_blank\" rel=\"noopener\">Linking with a larger market<\/a> such as the WCI could create a more stable and predictable market for all participating jurisdictions that can drive deeper and faster cuts in climate pollution. Public comment period for the current linkage rulemaking closes at the end of this month, and Ecology\u2019s continued progress towards a move that could stabilize and strengthen this market may be building confidence among covered entities and helped keep allowance bids stable, even as uncertainty about repeal persists.<\/p>\n<h3>How the Climate Commitment Act is benefiting Washington communities<\/h3>\n<p>The revenue generated from Washington\u2019s cap-and-invest auctions are supporting <a href=\"https:\/\/www.climatesolutions.org\/article\/2024-03\/year-two-cca-more-money-coming-washington-communities\" target=\"_blank\" rel=\"noopener\">essential community investments<\/a> such as clean energy, improved air quality, wildfire prevention, ferry electrification, infrastructure upgrades, vehicle charging stations, a cleaner power grid, and more. There are thousands of ongoing projects across the state, with hundreds of community programs aimed at ensuring a fair and sustainable transition for Washington. However, these efforts are <a href=\"https:\/\/riskofrepeal.cleanprosperousinstitute.org\/\" target=\"_blank\" rel=\"noopener\">at risk due to the potential repeal<\/a> of the Climate Commitment Act (CCA) through ballot measure I-2117. The CCA has also enabled Washington to secure substantial federal funding for climate initiatives, which could be diverted to other states if the act is repealed, further depriving residents of its benefits.<\/p>\n<p><strong>As Washington&#8217;s auction revenue continues to fund more critical projects statewide, the consequences of repealing the CCA are clearer than ever.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Results were released today for Washington\u2019s third quarterly auction of 2024, administered last Wednesday by the Department of Ecology (Ecology). During the auction, participating entities submitted their bids for allowances. Under the Climate Commitment Act \u2014 Washington\u2019s landmark climate law which sets a binding, declining limit on pollution \u2014 Washington\u2019s major emitters are required to &#8230;<\/p>\n","protected":false},"author":151379,"featured_media":24294,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[200,71676,107925,43,202,20,44],"tags":[],"coauthors":[107971],"class_list":["post-24293","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-california","category-carbon-markets","category-cities-and-states","category-economics","category-greenhouse-gas-emissions","category-news","category-policy"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Washington state\u2019s landmark climate law continues to build a greener future for Washingtonians - 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