Washington State Holds $62.5 Million Emergency Carbon Credit Auction

With prices at the pump soaring, the Washington State Department of Ecology held its first Allowance Price Containment Reserve auction on Wednesday for the cap and trade program that went into effect at the beginning of the year. Per the Climate Commitment Act passed by the state Legislature and signed into law by Gov. Jay Inslee in 2021, Washington’s cap and trade program requires emitters to obtain “emissions allowances” equal to their covered greenhouse gas emissions. Similar to stocks and bonds, these allowances can be obtained through quarterly auctions hosted by the Department of Ecology.