The Washington State cap and invest program was established in 2021 by the Climate Commitment Act (CCA). It combines a cap and trade system with a program to directly invest the generated revenue into addressing climate change. This program is intended to enforce the GHG limits set by the legislature, by requiring all businesses emitting at least 25,000 metric tons of CO2 equivalent to obtain allowances[a] equal in size to their total emissions. Businesses found not to be in compliance can be fined up to $50,000 per violation, per day. A set number of allowances are auctioned off and can be bought and sold on secondary markets, similar to securities.[1][2]
In December 2021, Washington joined the Western Climate Initiative, the auction program used by California and Québec's linked program, plus Nova Scotia's standalone program. The first auction was held February 28, 2023.[3]
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