Washington's first carbon auction sold every allowance at $48.50

Washington's cap-and-invest program, enacted in 2021, took effect in 2023: facilities emitting more than 25,000 metric tons of carbon dioxide must cover their emissions with allowances, many purchased at quarterly auctions run by the Department of Ecology, and the supply of allowances declines over time.

The first auction, held on 28 February 2023, sold all 6,185,222 available allowances at a settlement price of $48.50 — more than double the $22.20 floor. Because the auction is uniform-price, every winning bidder paid that lowest accepted price rather than their own bid.

On 28 March Ecology confirmed the haul: $299,983,267 deposited into state accounts earmarked for clean transportation, clean energy, climate resilience and environmental-justice programs. The clearing price well above the floor showed emitters expected the cap to bind, and revenue far exceeded official forecasts.