About the Climate Commitment Act

The Climate Commitment Act established a comprehensive “cap-and-invest” program to help WA lower fossil fuel emissions in order to reach its climate goals. WA is only the second state in the country to adopt this kind of market-based approach to aid in lowering emissions.

The law sets a limit, or “cap,” on how much carbon certain businesses are allowed to emit. Specifically, the CCA targets businesses that emit more than 25,000 metric tons of CO2 equivalent per year, which encompasses about 75% of the state’s total emissions.

Businesses are required to purchase allowances to emit up to the cap–which will get lower over time–and are therefore incentivized to lower their emissions to avoid this compliance cost. The money collected by the Department of Ecology is then invested into a variety of climate mitigation and adaptation projects.

Importantly, the CCA requires that at least 35% of funds collected through the sale of allowances must be invested in projects that benefit frontline and overburdened communities. Additionally, 10% of funds must be directed toward projects with tribal support.    

The CCA has the potential to lower emissions in WA, but is still a new program and generally untested. Strong oversight is necessary to ensure that businesses are complying with the act and that funds are being directed to meaningful projects that will actually lower emissions and benefit communities.

Regardless of any limitations, the CCA is a tool that WA has that can help hold large emitters of CO2 accountable. However, opponents of the program have successfully filed an initiative to repeal the CCA that will appear on the November 2024 ballot.