California and Washington state to join forces on carbon markets, aiming to cut pollution and raise billions

illuminem summarises for you the essential news of the day, reviewed by our editorial team. Read the full piece on Los Angeles Times or enjoy below:

🗞️ Driving the news: California is moving to link its Cap-and-Invest carbon market with Washington state’s system, expanding California’s existing partnership with Québec
• Officials say the larger market could improve trading efficiency, support emissions reductions and generate additional funding for climate and community programs

🔭 The context: California’s program, launched in 2013, sets a declining emissions limit for major polluters and allows companies to trade allowances
• The proposed linkage could lead to the first joint auctions in 2027
• California estimates the broader changes could provide $10 billion in electricity-bill credits and generate $8 billion for its Greenhouse Gas Reduction Fund through 2030

🌍 Why it matters for the planet: Linking carbon markets can expand the pool of compliance options and potentially lower the cost of emissions reductions
• An Environmental Defense Fund-backed analysis cited by the Los Angeles Times estimates the linkage could cut an additional 45 million metric tons of climate pollution through 2045, although market design and implementation will affect the outcome

⏭️ What’s next: The California Air Resources Board will begin the public regulatory process required to formally link the systems
• The states are targeting 2027 for their first joint auctions, while industry groups have called for analysis of potential effects on consumers, fuel costs and businesses

💬 One quote: “By joining forces with our partner in Washington State, we will build a stronger, more durable carbon market that will drive investment, cut pollution, and power the clean economy of the future,” said Gavin Newsom

📈 One stat: Additional climate pollution of 45 million tonnes that an analysis cited by the Los Angeles Times estimates could be avoided through 2045

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