S&P Global: “Linking Carbon Markets Could Boost Affordability”
RFF research associate Nicholas Roy discusses his thoughts on Washington and California's carbon markets, as well as new research about potential linkage between the two markets.
Washington, California and Quebec are in the process of linking their markets, which would bring down Washington prices closer to the levels seen in California and Quebec, RFF said in a March 11 report, without accounting for any potential major market movements like political threats or new regulations...
“That's probably the fastest way to reduce your prices in Washington, is to really push for linking and at the same time, you're going to get more emissions reductions between those two states,” Roy said. “And so, you address your affordability concerns in Washington while also addressing your climate ambitions with one policy decision, instead of having to go through relitigating and justifying a potential backsliding of your program.”
