Comments on the process of determining whether to pursue linkage of Washington’s carbon market with California and Quebec’s linked market

The Stockholm Environment Institute argues that full linkage between Washington's carbon market and the California-Quebec (WCI) market currently poses risks to Washington's environmental goals due to misaligned time horizons and differing levels of ambition. Specifically, the authors highlight a large bank of unused allowances in California that could reduce in-state emission reductions and auction revenues in Washington. They recommend that full linkage be contingent on California extending its program beyond 2030 and tightening its 2030 cap. As an interim measure, the authors propose 'restricted linkage'—such as a limit on the import of WCI allowances (e.g., 2-3% of compliance obligations)—to provide cost containment while maintaining environmental integrity and revenue streams for overburdened communities.

• Full linkage with the WCI market is likely to significantly reduce Washington's carbon allowance prices and associated auction revenues, which could diminish funding for vulnerable populations and emission-reducing infrastructure.
• California possesses a large bank of unused allowances—estimated at over 300 million—which could allow Washington entities to comply without achieving actual emission reductions, potentially increasing global greenhouse gas emissions.
• The authors recommend that Washington pursue 'restricted linkage' as an interim step, specifically suggesting a quota on WCI allowance imports of approximately 2-3% of compliance units for the first compliance period.
• To mitigate risks, California should explicitly extend its program beyond 2030, tighten its 2030 emissions cap, and implement measures to reduce the allowance overhang, such as an Emissions Containment Reserve.

APA

Stockholm Environment Institute (2023). Comments on the process of determining whether to pursue linkage of Washington’s carbon market with California and Quebec’s linked market. https://www.sei.org/wp-content/uploads/2023/05/sei-comments-on-wa-cca-linkage-15-may-2023.pdf

Chicago

Stockholm Environment Institute. Comments on the process of determining whether to pursue linkage of Washington’s carbon market with California and Quebec’s linked market. 2023. https://www.sei.org/wp-content/uploads/2023/05/sei-comments-on-wa-cca-linkage-15-may-2023.pdf.

Wikipedia

{{cite press release |author=Stockholm Environment Institute |title=Comments on the process of determining whether to pursue linkage of Washington’s carbon market with California and Quebec’s linked market |date=14 May 2023 |url=https://www.sei.org/wp-content/uploads/2023/05/sei-comments-on-wa-cca-linkage-15-may-2023.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@misc{stockholmenvironmentinstitute2023comments, author = {{Stockholm Environment Institute}}, title = {{Comments on the process of determining whether to pursue linkage of Washington’s carbon market with California and Quebec’s linked market}}, publisher = {Stockholm Environment Institute}, year = {2023}, month = may, url = {https://www.sei.org/wp-content/uploads/2023/05/sei-comments-on-wa-cca-linkage-15-may-2023.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }