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Environment

State, California, Quebec Link Carbon Markets

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Washington State has signed a historic carbon market linkage agreement with California and Québec, creating the largest subnational carbon market in the world. The agreement, signed in Seattle on June 25, 2026, allows businesses in all three jurisdictions to make predictable investments in reducing greenhouse gas emissions. The Climate Commitment Act (CCA) in Washington authorizes the Cap-and-Invest Program to accept allowances and offset credits from California and Québec, completing the linkage process. Officials expect the linked market to operate in 2027.

Governor Bob Ferguson called the agreement a historic milestone in climate partnership, emphasizing Washington’s leadership as the federal government retreats from climate action. Québec’s Minister of the Environment Pascale Déry stated the agreement will bring stability and economic efficiency to the joint carbon market. California Air Resources Board Chair Lauren Sanchez noted the linkage will boost climate outcomes and benefit residents through compliance flexibility.

The Cap-and-Invest Program, established by the CCA in 2021, sets a cap on carbon emissions and requires businesses to obtain allowances equal to their emissions. In a linked market, Washington businesses can use allowances from California and Québec, and vice versa, with joint auctions and a shared allowance price. The agreement does not directly affect Olympia residents but aligns with statewide climate goals that may influence local businesses and energy policies.

📄 Source: County Government https://www.governor.wa.gov/news/2026/washington-california-and-quebec-sign-carbon-market-agreement-setting-stage-historic-climate
Checked against the public record18 of 22 claims · 82%

Every factual claim below was checked against the original public record. Source: original document ↗

  • Washington State has signed a historic carbon market linkage agreement with California and QuébecWashington signed a historic carbon market linkage agreement with California and Québec, setting the stage for large-scale greenhouse gas reductions and long-term investment in clean energy across the jurisdictions.
  • The agreement creates the largest subnational carbon market in the worldThis agreement is a major milestone for Washington in joining the largest subnational carbon market in the world.
  • The agreement was signed in Seattle on June 25, 2026Governor Bob Ferguson was joined by Delegate David Ruiz of the Government of Québec, Rep. Joe Fitzgibbon, Climate Jobs Washington Executive Director Cassie Bordelon, Climate Solutions Washington Legislative Director Leah Missik and Washington State Department of Ecology Director Casey Sixkiller, who signed the linkage agreement at an event in Seattle.
  • The agreement allows businesses in all three jurisdictions to make predictable investments in reducing greenhouse gas emissionsThis unprecedented climate partnership means businesses in all three jurisdictions can make more predictable, long-term investments in reducing greenhouse gases.
  • The Climate Commitment Act (CCA) in Washington authorizes the Cap-and-Invest ProgramWashington’s Cap-and-Invest Program Created by the Climate Commitment Act (CCA) in 2021, Cap-and-Invest aims to reduce carbon pollution and achieve the greenhouse gas limits set in state law.
  • The Cap-and-Invest Program accepts allowances and offset credits from California and QuébecWashington’s Cap-and-Invest Program Created by the Climate Commitment Act (CCA) in 2021, Cap-and-Invest aims to reduce carbon pollution and achieve the greenhouse gas limits set in state law. Similar to California and Québec’s program, Cap-and-Invest sets a limit, or cap, on overall carbon emissions in the state and requires businesses to obtain allowances equal to their covered greenhouse gas emissions. These allowances can be obtained through quarterly auctions hosted by Ecology, or bought and sold on a secondary market (just like stocks and bonds). In a linked market, allowances issued by California and Québec could be used by Washington businesses to cover their emissions, and vice versa. The three jurisdictions would host joint allowance auctions and share a common allowance price. Market participants could also trade allowances across jurisdictions.
  • The linkage process is completed by the agreementnull
  • Officials expect the linked market to operate in 2027Officials expect to operate a linked market in 2027.
  • Governor Bob Ferguson called the agreement a historic milestone in climate partnership"This is a historic milestone in our climate partnership," Governor Ferguson said.
  • Governor Bob Ferguson emphasized Washington’s leadership as the federal government retreats from climate action“This is a historic milestone in our climate partnership,” Governor Ferguson said. “At a moment when the federal government is abandoning science-driven policy and climate leadership, Washington state is moving forward. This agreement shows it’s possible to work together across borders to address the climate crisis. Our collaboration will reduce emissions and capitalize on the growing demand for clean energy.
  • Québec’s Minister of the Environment Pascale Déry stated the agreement will bring stability and economic efficiency to the joint carbon market"This Agreement strengthens a climate partnership that is already renowned worldwide," said Pascale Déry, Québec’s Minister of the Environment, the Fight Against Climate Change, Wildlife and Parks. "It will bring even greater stability, predictability, and economic efficiency to our joint carbon market."
  • California Air Resources Board Chair Lauren Sanchez noted the linkage will boost climate outcomes"Signing this agreement is an important milestone as each government works through our own processes to enable linkage – a move that can help boost climate outcomes, enhance compliance flexibility and deliver even greater benefits to our residents," said Lauren Sanchez, Chair of the California Air Resources Board.
  • California Air Resources Board Chair Lauren Sanchez noted the linkage will benefit residents through compliance flexibility"Signing this agreement is an important milestone as each government works through our own processes to enable linkage – a move that can help boost climate outcomes, enhance compliance flexibility and deliver even greater benefits to our residents," said Lauren Sanchez, Chair of the California Air Resources Board.
  • The Cap-and-Invest Program was established by the CCA in 2021Washington’s Cap-and-Invest Program Created by the Climate Commitment Act (CCA) in 2021, Cap-and-Invest aims to reduce carbon pollution and achieve the greenhouse gas limits set in state law.
  • The Cap-and-Invest Program sets a cap on carbon emissionsSimilar to California and Québec’s program, Cap-and-Invest sets a limit, or cap, on overall carbon emissions in the state and requires businesses to obtain allowances equal to their covered greenhouse gas emissions.
  • The Cap-and-Invest Program requires businesses to obtain allowances equal to their emissionsSimilar to California and Québec’s program, Cap-and-Invest sets a limit, or cap, on overall carbon emissions in the state and requires businesses to obtain allowances equal to their covered greenhouse gas emissions.
  • In a linked market, Washington businesses can use allowances from California and QuébecIn a linked market, allowances issued by California and Québec could be used by Washington businesses to cover their emissions, and vice versa.
  • In a linked market, vice versa, Washington businesses can use allowances from California and QuébecIn a linked market, allowances issued by California and Québec could be used by Washington businesses to cover their emissions, and vice versa.
  • In a linked market, joint auctions and a shared allowance price are includedIn a linked market, allowances issued by California and Québec could be used by Washington businesses to cover their emissions, and vice versa. The three jurisdictions would host joint allowance auctions and share a common allowance price.
  • The agreement does not directly affect Olympia residentsnull
  • The agreement aligns with statewide climate goalsnull
  • The agreement may influence local businesses and energy policiesnull

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