For months, anyone under 18 has had free access to Seattle’s light rail, the Puget Sound ferry, and buses throughout Washington state. However, as students enjoy their free rides, they may not realize that the funding for this initiative comes from the state’s carbon pricing program. One year after the implementation of Washington’s “cap-and-invest” system, the state has raised a remarkable $2.2 billion for climate action.
The Climate Commitment Act, signed into law by Governor Jay Inslee in 2021, establishes a statewide limit on greenhouse gas emissions while creating a market for businesses to purchase “allowances” for the carbon pollution they emit. This has led to a significant reduction in emissions and generated substantial funding for climate initiatives. However, there is currently a pushback against the law, led by a hedge fund manager named Brian Heywood, who has funded a petition drive to repeal it. If the repeal goes through, it would not only cancel the climate law but would also block the state from implementing any similar systems in the future.
Despite the controversy, the Climate Commitment Act has already shown tangible benefits. Businesses are working to reduce their emissions to avoid paying for pollution allowances, while the revenue from the program is fueling clean energy efforts and incentives for environmentally-friendly vehicles. The fate of the climate law in Washington could have far-reaching implications, influencing other states’ decisions on implementing similar policies.
While the law has faced criticism over its impact on gas prices, proponents argue that the overall benefits of the program outweigh the temporary price increases. The revenue from the auctions is being used for various climate initiatives, including public transit projects, electrification of vehicles, and rebates for energy-efficient equipment for low-income households and small businesses.
As the fate of the Climate Commitment Act hangs in the balance, advocates and experts are emphasizing the importance of communication and making the program’s benefits tangible to people across the state. The successes and challenges faced by Washington will undoubtedly shape the future of carbon pricing and climate policy across the country.
