Cap-and-Trade Programs of California, Washington, and Québec Pursue Linkage

The cap-and-trade programs in California, Washington, and Québec are pursuing linkage agreements to connect their jurisdictions. The three jurisdictions signed a linkage agreement on June 25, 2026, authorizing each program to accept allowances and offset credits issued by the others. The linked market, once operational, will feature joint allowance auctions and a common carbon price. Québec's updated Cap-and-Trade regulation is effective September 10, 2026, while California requires the governor to issue linkage findings and CARB rulemaking.

The linkage aims to create a joint carbon market among the three jurisdictions. This structure allows for the fungibility of compliance instruments across the programs. The successful implementation of this common market will significantly affect how carbon pricing is applied to regulated entities.

RGGI is the first multi-state cap-and-trade program.