With repeal measure rejected, WA carbon auction prices surge

Prices for Washington’s air pollution allowances rebounded at an auction this month, the first sale since voters upheld the state’s cap-and-trade program.

The Department of Ecology on Wednesday said allowances the state offered on Dec. 4 sold for $40.26 each. That’s about 35% higher than the $29.88 sale price in September. Allowances for 2027, sold in advance at the latest auction, fetched $26 apiece.

Businesses in Washington that produce large amounts of air pollution – like oil refineries and paper mills – must meet an emissions cap set by the state or purchase the allowances. Money from the auctions is funneled to programs to combat climate change and improve the environment.

Altogether, the state raised close to $272 million during the Dec. 4 sale. Utilities raised another $107 million from sales of allowances allocated to them, money that is supposed to go toward easing costs for ratepayers.

https://washingtonstatestandard.com/2024/12/11/with-repeal-measure-rejected-wa-carbon-auction-prices-surge/