Ecology details Climate Commitment Act cap-and-invest progress, revenue distribution and linkage talks

Joel Creswell, climate pollution reduction program manager at the Washington Department of Ecology, briefed the Environment & Energy committee on the state’s Climate Commitment Act and its cap-and-invest program, outlining how the market works, how revenue is distributed and steps underway to link Washington’s carbon market with California and Quebec.

The CCA establishes a cap on greenhouse gas emissions from large sources, requires covered entities to obtain allowances equal to their emissions and auctions allowances quarterly. “The CCA creates a market based system for holding the state's largest polluters accountable and ensures that they minimize their pollution,” Creswell said. Ecology issues allowances, some are allocated for free as directed by statute and others sold at auction; each allowance permits one metric ton of carbon dioxide equivalent.

Why it matters: auction proceeds fund statewide climate, transportation and air-quality programs and are intended to provide direct benefits to overburdened communities and tribes. Creswell told the committee the program’s revenue supported a $3.2 billion set of appropriations for the 2023–25 biennium and that agencies reported roughly 335,170 metric tons of CO2e reduced from CCA-funded activities in fiscal year 2024.

Key facts and mechanics

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