Washington State and California Are One Step Closer to Linking Cap & Invest programs
Larger market promises less pollution and increased funding for emissions reduction programs
NEW YORK – California Governor Gavin Newsom and Washington Governor Bob Ferguson today announced a major step toward linking California and Washington’s carbon markets, a move that would expand the successful market California has shared with Québec since 2014. With California now completing its final legislative step and Washington finalizing its linkage rules earlier this month, the two states are positioned to build a larger, more coordinated West Coast market to cut climate pollution in 2027.
Linking the programs would allow businesses in California, Washington and Québec to use allowances across jurisdictions, participate in joint auctions and operate under a shared allowance price. A larger market can help cut emissions more cost-effectively, improve price stability and give companies more certainty as they invest in cleaner technologies.
New state data shows California continued cutting climate pollution in 2024, reducing greenhouse gas emissions by 3.9% while maintaining one of the world’s largest economies.
Following is a statement from NRDC (Natural Resources Defense Council) President and CEO Manish Bapna:
“The Trump administration is doing everything it can to let polluters off the hook, while California and Washington state are teaming up to hold them accountable. By linking their cap-and-invest programs, the states are creating a larger market that cuts more pollution at lower costs. This partnership makes clear that the nation is bigger than Washington, DC and demonstrates that we don't have to wait on the White House to take climate action. By working together across jurisdictions, we can reduce pollution and invest in our communities. That’s how we build a healthier, more affordable future.”
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NRDC (Natural Resources Defense Council) is an international nonprofit environmental organization with more than 3 million members and online activists. Established in 1970, NRDC uses science, policy, law, and people power to confront the climate crisis, protect public health, and safeguard nature. NRDC has offices in New York City, Washington, D.C., Los Angeles, San Francisco, Chicago, Bozeman, MT, Beijing and Delhi (an office of NRDC India Pvt. Ltd). Visit us at www.nrdc.org and follow us on Twitter @NRDC.