Consumer costs likely to rise as Washington carbon market rebounds

By Anne C. Mulkern | 12/11/2024 06:14 AM EST

The state’s carbon market is strengthening after voters rejected a measure to abolish it. That could increase gasoline and other prices.

Former Democratic state Sen. Reuven Carlyle (left) talks with Washington Gov. Jay Inslee (D).

Former Washington state Democratic state Sen. Reuven Carlyle (left) talks with Washington Gov. Jay Inslee (D) in the state Capitol in 2017. Carlyle helped create Washington state's carbon market in 2021 and continues to support it. Ted S. Warren/AP

Washington state will release data Wednesday that’s likely to show the rising cost of its ambitious program to cut carbon emissions — and Brian Heywood says he warned this would happen.

The Republican megadonor spent $7 million to put a question on the state’s November ballot asking voters to kill the program, which Heywood said increases gasoline and other consumer prices. Voters rejected the ballot measure by a large margin.

The new state data is expected to show that the costs to regulated businesses of complying with emissions cuts has roughly doubled since September and is close to the record-high level in 2023.

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“That was exactly my point,” Heywood said in a recent interview.

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