It will be a busy year for carbon markets. Here’s what to expect.

By Anne C. Mulkern | 01/08/2025 06:14 AM EST

Likely in 2025: A new United Nations-led venture, the marriage of markets in California and Washington, and the extension of California’s market.

From left: California Gov. Gavin Newsom, Oregon Gov. Kate Brown, Washington Gov. Jay Inslee and British Columbia Premier John Horgan sign a climate agreement in 2022.

California Gov. Gavin Newsom (left) and Washington Gov. Jay Inslee (second from right) will try to merge their state carbon markets in 2025. The two men along with Oregon Gov. Kate Brown and British Columbia Premier John Horgan sign a climate agreement in 2022. Jeff Chiu/AP

Big developments are coming worldwide for carbon markets in 2025 including the expected creation of a new market run by the United Nations.

In addition, the two U.S. states that run statewide carbon markets, California and Washington, could merge their programs.

California lawmakers are also likely to try this year to extend the state’s program — one of the largest in the world — beyond its 2030 expiration date.

Here is what experts expect.

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