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Advertisement Washington Adopts Economy-Wide Climate Legislation: “Cap-and-Invest” Approach Sets a Price For Carbon Emissions And Allows Washington To Join Existing Emissions Credit Markets Wednesday, May 19, 2021 On May 17, 2021, Washington Gov. Jay Inslee signed the Washington Climate Commitment Act (CCA), which will create an economy-wide cap on greenhouse gas (GHG) emissions and create a system in which GHG credits are auctioned and can be traded. In combination with the Clean Energy Transformation Act, enacted in 2019, and the newly-enacted Clean Fuel Standard, the legislation sets a course for the state to decarbonize its economy by 2050. [1] Key Takeaways Beginning on January 1, 2023, Washington will adopt a cap-and-trade system for reducing GHG emissions economy-wide, with a declining cap on GHG emissions and a system for trading emissions credits that will tie into existing trading regimes in California, Quebec, and elsewhere.

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