New York Climate Week - Carbon Market Linkage

During New York Climate Week, representatives from California, Québec, and Washington State reaffirmed their commitment to forming a shared carbon market, known as “linkage.” This initiative aims to enhance collective efforts to combat climate change and promote market-based climate policies.

The linkage process is built on the existing partnership between California and Québec, which has been operational since 2014. Washington State is currently working to align its Cap-and-Invest program with those of California and Québec, following a directive from its Climate Commitment Act. This includes conducting an Environmental Justice Assessment and gathering public input before finalizing a linkage agreement. The earliest expected completion of this agreement is late 2025, contingent on the necessary regulatory updates and evaluations by California and Québec to ensure compliance with their greenhouse gas emissions reduction targets. The collaboration reflects a growing recognition of the need for international cooperation in addressing climate change, as well as the importance of sending market signals to encourage private sector investment in sustainable technologies.

Key Points of the Carbon Market Linkage

• Current Status: California and Québec have successfully linked their carbon markets since 2014, while Washington is in the process of aligning its regulations.
• Regulatory Steps: Washington must complete several legal steps, including assessments and public consultations, before a linkage agreement can be finalized.
• Timeline: The earliest anticipated date for a formal linkage agreement is late 2025, depending on the completion of necessary regulatory updates.
• Goals: The linkage aims to strengthen climate action, reduce air pollution, and encourage other governments to adopt similar market-based policies.

Broader Context

The linkage initiative is part of a larger movement among states and provinces to address climate change through cooperative efforts. During the same week, California Governor Gavin Newsom announced a new campaign encouraging residents to take personal actions against climate change, demonstrating a multifaceted approach to environmental responsibility. This dual focus on regulatory frameworks and individual actions underscores the comprehensive strategy needed to tackle the climate crisis effectively.