California to connect cap-and-invest with Washington

California is advancing plans to link its cap-and-invest program with Washington State's carbon market, aiming to reduce pollution and boost revenue for climate initiatives. Announced by Governor Gavin Newsom, this move will enable joint auctions starting in 2027 and is projected to generate billions in climate funding and relief for electricity customers. The linkage expands the existing California-Quebec market and is part of broader efforts to enhance the state's climate policies amid federal rollbacks on emissions regulations.

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