Washington State Department of Ecology
11/15/2024 | Press release | Distributed by Public on 11/15/2024 14:16
Washington aces first Climate Commitment Act compliance test
Department of Ecology News Release - November 15, 2024
Washington aces first Climate Commitment Act compliance test
New data shows major greenhouse gas emitters submitted 99.9% of required allowances
Washington's Mt. Rainier captured at dusk
OLYMPIA -
Washington's Climate Commitment Act marked a major milestone in November when businesses covered under the law were required to turn in emissions allowances for the first time. The compliance deadline went smoothly - 99.9% of required allowances were submitted. It's a strong start to achieving the policy's limits on greenhouse gas emissions.
"It's been an incredible year for climate policy in Washington. We have strong public support, and businesses are doing their part," said Gov. Jay Inslee. "Thanks to the Climate Commitment Act and our other climate laws, we're delivering clean energy, clean air, and healthier communities for Washingtonians. I encourage other states to see our success as a strong signal that we can strengthen our collective fight against climate change."
The Climate Commitment Act created Washington's Cap-and-Invest Program, which sets an annual cap on greenhouse gas emissions that declines over time to meet Washington's legal limits on statewide emissions. Major sources of greenhouse gas emissions are required to obtain allowances for the carbon pollution they emit, and each allowance is equivalent to one metric ton of carbon dioxide.
Over time, the cap goes down, pushing emissions lower. The cap declines at an annual rate of 7% during the first compliance period, which runs from 2023 to 2026. The policy is designed to reduce emissions at the lowest possible cost by giving businesses the flexibility to choose whether to compete for limited allowances, invest in reductions, or a combination of both.
"Achieving nearly 100% compliance is a big win early in the program, and it shows that Cap-and-Invest is working as intended," said Washington Department of Ecology Director Laura Watson. "We're well positioned to link with the California-Québec market, which will further strengthen our program."
For the first three years of each compliance period, businesses must turn in 30% of their required allowances for emissions from the previous year. On Nov. 1, 2024, businesses were required to submit allowances equal to 30% of their 2023 emissions.
At the end of the four-year period, the remaining 70% of allowances from the compliance period are due. Offset credits - generated by projects that reduce greenhouse gas emissions - can also be used to cover up to 8% of emissions during the first compliance period. This approach gives businesses time to make long-term investments that reduce emissions while also providing short-term accountability.
Together, allowances and offset credits are called "compliance instruments." The 2024 compliance event required 19,526,931 compliance instruments to be retired and 19,526,071 were submitted.
Company-level compliance details are now available on Ecology's website.