Carbon Cap-and-Invest/ Washington State

Meet your cap-and-invest obligations, through an effective strategy that brings carbon emissions, compliance, and your company’s objectives in sync with each other.

Supporting: Industrial facilities, in-state electricity producers, electricity importers, natural gas distributors, and fuel suppliers.

carbon_cap_and_invest_washington_strategy

Cut through the complexities – let's team up and craft a strategy that meets regulations and aligns with your company goals.

Washington Climate Commitment Act

The State of Washington passed the Climate Commitment Act (or CCA) in 2021 and initiated a new "cap-and-invest" program, establishing a comprehensive, market-based program to reduce carbon pollution and achieve the greenhouse gas limits set in state law.

The program is similar to those implemented in California and the Northeast United States. It sets a cap on the total amount of carbon emissions that can be released by covered entities, such as power plants, industrial facilities, fuel suppliers, natural gas and electric utilities, waste-to-energy facilities (starting in 2027), and railroads (starting in 2031). These entities must then purchase allowances equal to their covered greenhouse gas emissions.

Reinvest in Clean Energy Programs

The program is administered by the Department of Ecology ⁣⁣— they are responsible for setting the cap, issuing allowances, and enforcing compliance.

The proceeds from the sale of allowances will be invested in clean energy and energy efficiency programs to further reduce greenhouse gas emissions.⁣⁣
⁣⁣
The first emissions allowance auction will take place in the second half of February 2023. If all goes according to plan, Washington’s emissions will drop to 95% below 1990 levels by 2050, an even steeper cut than California’s, which aims for an 80% reduction by the same year.⁣⁣

Carbon Trading Instruments

Washington's Department of Ecology outlines Climate Commitment Act (CCA) auctions and trading instruments

There are two types of compliance instruments, each equal to one metric ton of carbon dioxide:

Emissions allowances (which are issued by Ecology)
Offset credits (which come from investing in projects that help reduce carbon in the atmosphere)

Via State of Washington Department of Ecology

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