Washington considers carbon fee on some out-of-state products

By Anne C. Mulkern | 08/11/2025 06:13 AM EDT

The state faces legal questions as it weighs imposing a tax on products made in states or nations that do not charge for carbon emissions.

Gov. Bob Ferguson (D) of Washington, which is considering carbon fees for certain out-of-state products.

Gov. Bob Ferguson (D) of Washington, which is considering carbon fees for certain products made in states or countries that do not charge large emitters for their carbon emissions. Lindsey Wasson/AP

Washington state is exploring the possibility of imposing a fee on products that are manufactured in a state or country that doesn’t put a cost on carbon emissions.

Modeled after a program in the European Union, the fee would aim to protect local manufacturers that would have to pay for their emissions under Washington’s carbon market.

The EU is set to launch a tariff on imports — known as a carbon border adjustment mechanism or CBAM — in 2026. The EU will charge a fee on imports of aluminum, steel, cement, fertilizers and other emissions-intensive goods from nations that do not impose a similar price on carbon.

Advertisement

Washington is considering a policy “similar to the EU model — placing a carbon price on imports from jurisdictions without comparable carbon pricing,” according to notes from a July meeting Washington’s Department of Ecology held with advisory groups.

GET FULL ACCESS