WA Demonstrates Continued Stability in Q2 Allowance Auction

The results of the Climate Commitment Act (CCA) Auction #10 were released today by the Washington State Department of Ecology. At the second auction of 2025, current and advance allowances sold at an average of $51.22 each and 8.75 million allowances were sold, of which 2.15 million were consigned for utilities to use the revenue.

Today’s auction prices show that Washington’s carbon market remains healthy and stable, with prices comfortably between the floor and ceiling. Since its inception, Washington’s carbon market has consistently remained below allowance cost projections issued before the auctions began, which shows that the market is functioning effectively, finding efficiencies, encouraging innovation, and avoiding unsustainable costs.^[1]*

“In the face of federal attacks on environmental and clean energy programs, Washington’s Climate Commitment Act continues to drive down air pollution while generating revenues to invest back into local communities,” said Michael Mann, Executive Director of Clean & Prosperous Washington.

In Auction #10, the allowance price containment reserve was not triggered and there was robust market participation with all allowances offered being sold. The auction also raises significant new revenue to continue funding efforts to reduce pollution, increase transportation accessibility and safety, and support the clean energy transition.

Amidst unprecedented federal efforts to threaten cap-and-invest policies and roll back climate commitments, along with uncertainty regarding the direction of neighboring markets, Washington state’s carbon market remains stable, strong, and a reflection of our communities’ and businesses’ commitment to mitigating the effects of climate change while growing the economy and creating jobs.

Mapping Washington’s Climate Commitments

CCA Auction #10 generated an additional $322 million in state revenue from regulated parties plus another $126 million as consigned revenue for utilities to use for decarbonization and other community-facing uses. This brings the total funding generated by the CCA to $960 million in consigned revenue and nearly $3.19 billion to be reinvested in Washington communities.

Remember that you can always explore nearly 2,500 CCA-funded projects in the Clean & Prosperous Institute’s interactive resource: Mapping Washington’s Climate Commitments. In the coming weeks, we’ll be releasing an updated version of our map that includes the recently-adopted budget and a suite of new CCA-funded projects!

Revenue generated from the quarterly allowance auctions is being reinvested in effective, community-facing projects, including:

• Approximately $663 million to install charging infrastructure and replace or convert seven diesel ferries into hybrid-electric vessels, including the Wenatchee, which recently re-entered the Washington State Ferries fleet and is the largest hybrid-electric passenger vessel in North America;
• At least $75 million to support wildfire resilience and preparedness, including a recently-funded project to build a solar-powered microgrid in Eastern Washington to serve as a backup power source during wildfires; and
• A $1.86 million Clean Energy Community grant to Yakima Chief Hops in Central Washington for an innovative CO₂ recovery plant that will capture and repurpose carbon dioxide during the hop production process.

ICYMI: Energy Innovation Models Impact of House-Passed Bill to Gut the Inflation Reduction Act

In case you missed it: Energy Innovation recently modeled the impacts of the massive cuts to the Inflation Reduction Act passed by the House – and it’s devastating for consumers, workers, and our economy.

Here are the toplines:

• The bill slashes GDP by $1.1 trillion between 2026 and 2034, undermining America’s economic growth and energy security;
• More than 830,000 jobs would be lost by 2030, especially in clean energy manufacturing, construction, and supply chains; and
• Annual household energy bills rise by $120 in 2030 and $230 in 2035.

Gutting the IRA jeopardizes nearly 5,000 clean energy projects, erasing hundreds of billions in private investment and pushing higher costs onto families and businesses, all while worsening pollution and public health outcomes. Read more from Energy Innovation.

Clean & Prosperous Institute’s (CPI) research also emphasizes the positive impact clean energy investments have on our economy. With partners at Greenline Insights, CPI found that the CCA will grow our economy by $9.1 billion and create 45,000 jobs over the next eight years. Explore the economic impact the CCA is having in Washington in this report.

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^[1] A frequently cited industry forecast during CCA passage and rulemaking projected allowance prices of $184-$214 in 2024-2027 for a program that was not linked to California’s. The state’s economic modeling for the final regulatory analysis predicted costs of $65 in 2025.  Average prices have been below each of these forecasts since the first auction in 2023 ($53 in 2023, $32 in 2024).