Western Carbon-Market Linkage
Coverage from Columbia Insight, Stateline, and others
Washington, California, and Québec are working to connect their carbon markets through shared auctions, common trading rules, and cross-border use of emissions allowances.
The arrangement builds on more than a decade of California–Québec cooperation and Washington’s Cap-and-Invest program, established under the state’s Climate Commitment Act. Supporters expect a larger market to improve trading and reduce price volatility, while analyses point to consequential trade-offs involving Washington allowance prices, public revenue, emissions reductions, and localized pollution. The linkage’s significance lies in how regional market design shapes both climate outcomes and the costs and benefits borne by governments, businesses, and communities.
