California, Quebec and Washington Merge Carbon Markets by 2027 as Price Gap Tops 2-to-1
Updated
Updated · KUOW News and Information · Jun 26
California, Quebec and Washington Merge Carbon Markets by 2027 as Price Gap Tops 2-to-1
3 articles · Updated · KUOW News and Information · Jun 26
Summary
An agreement signed Thursday will let polluters trade carbon allowances across California, Quebec and Washington by 2027, creating what officials called the world’s largest subnational carbon market.
The linkage aims to steady Washington’s higher compliance costs: California and Quebec sold allowances at $28.81 a metric ton in their May 20 joint auction, versus $64.56 in Washington’s June 3 sale.
Washington officials said the merged market supports the state’s cap-and-invest program, which tightens emissions limits over the next two decades and channels auction revenue to clean-energy and low-income community programs.
Critics split on the deal’s effects: business groups and a free-market think tank said linking could curb future price increases, while environmental justice advocates warned trading across distant markets can leave local pollution hotspots intact.
The three jurisdictions together equal the world’s fourth-largest economy, and the pact comes as state and provincial leaders cast the move as a climate-policy counterweight to retreat in Washington, D.C.
Will this carbon market merger actually lower energy bills, or could it create a costlier system for everyone involved?
Can this subnational climate alliance succeed where national governments have struggled, forging a new model for global cooperation?
When polluters can buy cheaper permits from afar, who protects the air for communities living near industrial sites?
North America’s Largest Linked Carbon Market: Washington, California, and Québec’s 2027 Merger Explained
Overview
The imminent merger of carbon markets between Washington, California, and Québec marks a major step in North American climate policy. This decision, strongly supported by Washington’s governor, follows a multi-step process that included public and Tribal input. The goal is to create a robust, integrated carbon market that builds on the decade-long success of the California-Québec partnership. The merger aims to reduce emissions more effectively and provide greater predictability for businesses. As the process evolves, the Ecology department will keep stakeholders updated, ensuring the new linked market is both expansive and responsive to community needs.