Washington state’s estimated revenue from a new carbon credit system for the first five years has increased by $1.6bn, because of rising credit values and plans to auction a portion of future allowances.
The Washington Department of Ecology predicts revenue from its carbon allowance auctions will bring the state nearly $3.7bn from 2023-2027, up 81% from projections last year.
According to Ecology, its original outlook released in 2021 was based on an average of California's most recent auction prices at the time, which ranged from $16.68-$18.80/metric tonne, while the new projections used an average of California's latest auction prices, which have been $27.00-$30.85/t.