Washington state has announced on Tuesday it will start implementing a cap programme which forces companies to pay for their carbon dioxide emissions that affect the climate.
Bill Shobe, a professor of public policy at the University of Virginia stated that “a cap-and-trade program is a way of giving everyone incentive to take the damage of CO₂ into account.”
According to the programme, four state-issued carbon permits will be auctioned every year for companies that exceed the threshold of 25,000-metric-ton. Available permits would also decrease every year.
Non-compliance will result in a fine of $50,000 per violation per day. Eligible companies will have notice period till Nov. 1, 2024 to cover 30 percent of their 2023 total emissions during the state’s transition.
A few emissions-intensive and trade-exposed businesses will be exempted from having to purchase allowances right away to preserve their investments in the state.
Washington joins 14 other states in applying the cap-and-trade program which began in 2013. Many major manufacturing companies located in the state exceed the set threshold; including Boeing and BP.
Ten percent of the proceeds of the program, estimated to be around $1bn a year, will be directed to back tribal-supported projects, while 35 percent will be reinvested into communities affected by pollution.
The associate vice president of U.S. climate at the Environmental Defence Fund, Pam Kiely expressed her hopes that more steps would follow Washington’s footsteps in implementing rigorous emission reduction measurements.
