Governor Newsom Advances California's Carbon Market Linkage with Washington State
Governor Gavin Newsom has taken a significant step forward in California's plan to link its carbon market with Washington State. On September 21, 2026, Governor Newsom made the formal findings legally required for California to proceed with linking the two markets, consistent with advice from the Attorney General. This action allows the California Air Resources Board (CARB) to initiate the public regulatory process, which is the final step before the markets are formally linked. The proposed linkage aims to create a larger, more stable carbon market, which is expected to help California continue to efficiently reduce climate pollution and support investments in cleaner transportation, affordable housing, wildfire resilience, and other community priorities. California first launched its carbon market in 2013 and linked with Quebec's Cap-and-Trade System in 2014. Washington State became the second U.S. state to launch a carbon market in 2023, with its system designed for future linkage.
