Washington, California and Québec move to link carbon markets

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🗞️ Driving the news: Washington State, California, and Québec signed an agreement to pave the way for the largest North American subnational carbon market
• The framework outlines coordination on pollution permit sales, cross-border credit tracking, and market oversight
• Washington, which launched its own carbon market in 2021, would formally join the existing California-Québec system, which has operated jointly for over a decade

🔭 The context: The agreement does not immediately link the markets but sets the stage for the regulatory steps required to unify the three programs
• Officials say a combined market could strengthen pricing signals, improve efficiency, and provide a counterweight to federal rollbacks under the Trump administration

🌍 Why it matters for the planet: By expanding the carbon market across multiple jurisdictions, the three governments aim to reduce greenhouse gas emissions more effectively, incentivize cleaner energy, and stabilize carbon pricing
• Such markets also set a precedent for cross-border climate cooperation outside federal frameworks

⏭️ What’s next: Regulators plan to finalize the technical and legal steps needed to link the programs in 2027, including harmonizing rules, tracking systems, and compliance mechanisms
• The initiative is positioned as a model for other states and provinces seeking robust climate action amid federal policy uncertainty

💬 One quote: “This market expansion is a clear signal that states and provinces will continue to lead on climate, even in the face of federal rollbacks.” – Washington Gov. Bob Ferguson

📈 One stat: The linked market would encompass three of North America’s largest subnational economies, covering tens of millions of residents and industries across the Pacific Coast and eastern Canada

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