Washington became the second U.S. state to enact an economy-wide emissions trading system under the Climate Commitment Act (2021). Covering approximately 75% of state emissions across 97 entities, the program has raised over $4 billion for climate investments since its first auction in February 2023. WCI linkage with California and Québec is actively under negotiation.
Washington passed the Climate Commitment Act in 2021, with operations beginning in January 2023. An economy-wide cap on GHG emissions declines over time. Covered entities purchase allowances at quarterly auctions on the WCI Inc. platform. Allowances are tradeable on the secondary market. All proceeds are invested in climate projects — at least 35% to overburdened communities, 10% to Tribal-supported projects. Initiative 2117 to repeal the CCA was defeated in November 2024 by a 24-point margin. The program was designed “linkage-ready” with WCI from inception.
Washington’s cap-and-invest program covers approximately 75% of state emissions through targeted sectors.
Six pillars of Washington's cap-and-invest system
7% per year (2023–2030), 1.8% per year (2031–2042), 2.6% per year (2043–2049). Targets: −45% by 2030, −70% by 2040, −95% + net-zero by 2050.
4 sealed-bid auctions per year on WCI Inc. platform. Current + advance vintage. All winning bidders pay the same settlement price.
Floor $25.85 (2025), ceiling $94.85 (2025), both rise 5%+CPI. APCR Tier 1 $60.43, Tier 2 $77.63.
~40 entities, 100% of baseline in 1st period (2023–2026), declining 3% per period. Carbon intensity or mass-based baselines. Cannot consign.
Electric utilities: consignment starts 65% (2023), increases 5% per year to 100% in 2030. Natural gas utilities must sell at auction; proceeds benefit customers.
8% cap (1st period: 5% general + 3% Tribal), 6% (2nd period+: 4% general + 2% Tribal). Only 0.13% used in first compliance event.
Track verified emissions, 30% annual partial surrender, 4-year compliance period management
Cross-map emissions with WA auction prices ($48–70 range), EITE allocation, energy prices
Projects evaluated against WA’s steeper 7% per year cap decline, capital efficiency under CCA
EITE baseline tracking (100%→97%→94%), utility consignment schedules, Tribal offset credit opportunities
Price scenarios integrating WCI linkage impact, banked allowance dynamics, floor/ceiling trajectories
WA auction results, WCI linkage developments, regulatory rulemaking (SB 6058, HB 1975), EITE report updates
Washington’s cap-and-invest program was designed “linkage-ready” from inception, using the same WCI Inc. auction platform as California and Québec. A draft linkage agreement was released for public review in March 2026. If completed, this would create North America’s largest carbon market spanning three jurisdictions — fundamentally changing allowance supply dynamics, price convergence, and compliance strategies for all participants.
By Koorosh Behrang
By Koorosh Behrang
By Koorosh Behrang
Answers to the most common questions about Washington's Climate Commitment Act, cap-and-invest auctions, and WCI linkage.
Established by the Climate Commitment Act (2021), Washington’s cap-and-invest covers approximately 75% of state GHG emissions across approximately 97 entities. Quarterly auctions on WCI Inc. platform since February 2023. Targets: minus 45% by 2030, net-zero by 2050. Over 4 billion USD raised for climate investments.
4 sealed-bid auctions per year on WCI Inc. platform. Uniform settlement price. Prices started at 48.50 USD (February 2023), approximately 70 USD by late 2025. Floor price 25.85 USD (2025), ceiling 94.85 USD.
Draft linkage agreement with California and Quebec released March 2026. Public comment through May 1, 2026. Linked operations could begin as early as 2027. Would create North America’s largest 3-jurisdiction carbon market.
Approximately 40 entities receive 100% of baseline emissions free in 1st period (2023-2026), declining 3% per compliance period. Baselines set from 2015-2019 data. EITEs cannot consign their allowances for auction.
TerraNova helps navigate CCA compliance: emission reporting, auction strategy, 4-year compliance period management, EITE allocation tracking, WCI linkage preparation, and allowance portfolio optimisation.
See how TerraNova delivers finance-grade Washington CCA intelligence — from allowance auction strategy and EITE allocation tracking to 4-year compliance period management and WCI linkage preparation.