Washington held its first carbon allowance auction on March 7 under the new cap-and-invest law passed in 2021. Results from the first auction were announced on March 14, in which industry participants and speculators bid on a limited number of “allowances” offered by the state.

California implemented the nation’s first multi-sector cap-and-trade program in 2015, which covers virtually its entire economy. Washington’s Climate Commitment Act sets more aggressive goals than California. The final tally on Washington’s first auction of “allowances” resulted in a $48.50 per metric t...