Will Washington Link Its Forthcoming Greenhouse Gas Emissions Cap-and-Trade Program With California's?

On May 17, 2021, Washington Governor Jay Inslee signed into law the Climate Commitment Act. The legislation creates a market-based, economy-wide cap-and-trade program for greenhouse gas emissions in Washington state. The legislation includes provisions ordering the Washington Department of Ecology (Ecology) to "consider opportunities to implement the [cap-and-trade] program in a manner that allows linking the state's program with those of other jurisdictions."

Until now, California has been the only state with a greenhouse gas emissions cap-and-trade program. California's program began operation in 2013, and has been linked with Québec's cap-and-trade system since 2014. Now, Washington's new cap-and-trade legislation paves the way for a Washington-California linkage agreement.