The price of pollution allowances in Washington state’s carbon market hit its highest level in more than two years, signaling that polluters are increasingly paying for the excess emissions instead of reducing them.
Regulated polluters paid $58.51 for each pollution allowance at a Washington auction in June, according to data released Wednesday. The price was $50 at the previous auction, in March.
Washington, through its carbon market, sets yearly limits on total greenhouse gas emissions in the state and gives regulated polluters a choice between cutting their emissions under a certain level or purchasing pollution allowances for each ton of excessive emissions. Washington spends the revenue from pollution allowances on climate-focused projects, such as infrastructure for electric vehicles.
The program requires deep cuts in greenhouse emissions, and most regulated entities haven’t been able to reduce their pollution that rapidly, said Mitul Kaushal, associate at cKinetics, a Delhi, India-based financial advisory firm.
