Washington state has made a clear statement in the battle against climate change with recent moves in their Cap-and-Invest Program. Last Wednesday, the Washington Department of Ecology announced successful results from the state's pre-compliance auction for carbon allowances. A total of 3,641,333 Allowance Price Containment Reserve (APCR) allowances were snatched up at the preset price of $60.43 each, raking in approximately $220 million for state coffers.
In a statement acquired by Washington Department of Ecology, Ecology Director Casey Sixkiller highlighted the significance of the auction's outcome, saying "The auction results show the market’s confidence in the endurance of our flagship climate policy." With the annual compliance deadline looming on November 1, players in the market are required to submit allowances covering 30% of their 2024 emissions.
Unlike the quarterly auctions, this special pre-compliance event offers APCR allowances that are available at a fixed price and are not tradable between entities. This mechanism ensures that businesses have one last chance to meet their regulatory requirements before the deadline strikes.
Looking forward, Washington has a reserve auction scheduled for November 12. The pricing for this auction will be based on the September's quarterly auction settlement price. The final quarterly auction of the year is pegged for December 3, offering another opportunity for businesses to settle their environmental debts.
