Washington stands to lose $3.8 billion in revenue over the next four years if voters end the state’s cap-and-trade style carbon market in November, a new state analysis shows.
Approval of Initiative 2117 would remove a funding source for programs that help phase out natural gas heating in buildings, build community solar and battery storage projects, improve air quality and capture methane at landfills, the Washington Office of Financial Management concluded.
The carbon market is set to generate roughly $3.8 billion for Washington between 2025 and 2029 through state sales of “allowances” to emitters that cannot meet emissions limits.
Ending the market would revoke state authority for spending that revenue, part of which would bankroll cleaner transportation and other climate-related efforts. Some green programs will continue to get money from the state general fund and other sources.
