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Newsom announces 21 September CA–WA linkage authorisation at Climate Week NYC, 23 September; Washington closes linkage rulemaking same day

Trading-day outlook

AS OF 24 September 2026, 06:00, MDT (Calgary, UTC-6). Futures marks are the 2026-09-23 close (prior session), marked off the most liquid futures contract by open interest, Dec26; California-Quebec (CCA)/EU ETS (EUA)/RGGI (RGA)/UK ETS (UKA)/Washington (WCA) are carried from a prior session and labelled as such in the line. Auction clearings and regulator prints carry their own dates, which are stated on each. Currency is named on every price.

1. North America

1a. Compliance carbon

California-Quebec (CCA). Mark: USD 31.40 (2026-09-23, most liquid futures settlement (Dec26), CCA V26, settlement observation), -0.3 percent vs prior same-basis mark — carried from the 2026-09-23 session, the same-day settlement file has not reached the tape. Primary print: USD 32.48 (2026-08-19, Auction 48, current-vintage settlement); the Dec26 future sits about 3.3 percent below that clearing, a modest post-auction discount rather than a data question.

What moved: Governor Newsom announced at Climate Week NYC on 23 September that California is moving toward linking its carbon market with Washington State ; he has made the findings California law requires about a partner state's market before CARB may proceed with linking . California and Quebec still have to complete their own regulatory changes before merging can occur.

Why: Linkage widens the pool into a structurally short book. Our forward rows have the joint market in deficit throughout — -27.0 Mt in 2027 deepening to -84.2 Mt by 2030 — on amended 17 CCR 95841 Table 6-2 (effective 1 September 2026, 118.3 Mt removed across 2027-2030) plus Quebec's Décret 1126-2017. Those rows are budget minus emissions and carry no bank, no reserve and no ceiling, so read them as a supply path, not a scarcity count.

Desk view: Judgment — constructive CCA on the structural curve, neutral on the front; authorisation is a step, not the link, and the binding items are CARB's and Quebec's own rulemakings.

Washington (WCA). Mark: USD 39.40 (2026-09-23, most liquid futures settlement (Dec26), WCA V26, settlement observation), -0.3 percent vs prior same-basis mark, carried from the prior session. Primary print: USD 39.50 (2026-09-02, Auction #15 settlement).

What moved: Ecology adopted the Chapter 173-446 WAC amendments on 23 September (registered Ecology-WAC-173-446-Adopted-Text-2026-09-23; rule effective 24 October) — the state finalised the regulatory changes making its market compatible with California-Québec, completing the steps it needs for linkage . ECR Auction #1, held 16 September, sold all 731,000 vintage-2023 allowances at USD 39.50 with cover 2.11 (Ecology publication 26-14-070, results released 23 September).

Why: The 2027-2030 supply rows are now the adopted Table 210-1 budgets (47.3/43.1/39.0/34.8 Mt), against demand of 56.7 falling to 54.2 — deficit throughout, and 2029-2030 re-row again upon linkage per the table's own footnote.

Desk view: Judgment — bullish WCA into 2027 on the adopted ladder; near term the cover of 2.11 at the ECR says bid is present at the low-39s. APCR Auction #8 on 30 September offers 172,348 allowances at Tier 1 USD 65.26, Tier 2 USD 83.84 with none offered (Ecology publication 26-14-072) — far above the mark, so no ceiling pressure.

RGGI (RGA). Mark: USD 37.69 (2026-09-23, most liquid futures settlement (Dec26), RGGI V26, settlement observation), -2.3 percent vs prior same-basis mark, carried from the prior session. Primary print: USD 37.65 (2026-09-09, Auction 73 clearing price).

What moved: The 23 September settle is the softest same-basis move on our tape this week, -2.3 percent. Federally, EPA's final rule repealing most provisions of the 2024 Carbon Pollution Standards published with an effective date of 16 November 2026 — note the instrument's own scope word: it is a partial repeal.

Why: Standing facts that hold the read: the 2026 CCR was triggered and fully depleted at Auction 71 (held 11 March 2026, over 7.8M allowances sold, clearing USD 24.99, register Auction_71_Market_Monitor_Report) — a spent lever, not a dormant one. Virginia rejoined on 1 July 2026 and its 11.48M H2 budget allowances plus a 1,148,000 CCR tranche are offered beginning with Auction 73, spread across the September and December sales. Ten-state rows are deficit from 2027 (-9.8 deepening to -32.9 Mt), against a monitor surplus of 55M short tons at end-Q2 2026, projected 45M at the CP6 deadline (Potomac special Supply & Demand report, 21 August 2026).

Desk view: Judgment — neutral to constructive. Drawdown pace, not any single compliance year, is what reprices; the federal repeal removes a backbone that was never the binding constraint inside RGGI states.

Alberta TIER. Primary print: CAD 95.00 (2026-05-15, headline TIER price for 2026, stated verbatim in s.1.2.1.1 of the Canada–Alberta Implementation Agreement). No citable secondary credit mark on our tape.

What moved: Nothing in TIER itself overnight.

Why: The live item remains clause 1.2.3.4: credits generated before enactment of the credit price floor regulation — which Alberta is to enact by 31 December 2026 — stay transferable below the floor per their original expiry periods.

Desk view: Judgment — neutral on the headline price, which is administered and set to 2040 (CAD 100 for 2027-2029, CAD 115 in 2030); the trade is the grandfathering cutoff, which argues for pre-enactment issuance to price at a discount to post-enactment paper.

1b. Low-carbon fuels (LCFS / CFR)

California LCFS credit: USD 83.77 (covering week of 2026-09-14, report posted 2026-09-22, CARB weekly volume-weighted average credit transfer price, range 74.00–85.25), against USD 79.85 for the week of 2026-09-07 — up 4.9 percent week on week, the fourth consecutive weekly gain on our tape. BC LCFS: CAD 172.00 (2026-08-31, monthly average credit transfer price). RIN prints are 31 days old and are historic, not marks; the desk holds no current licensed RIN level.

What moved: Our monitors flag the renewable-diesel margin channel turning mixed from up. Energy legs: Brent USD 114.89 per barrel, WTI USD 96.41, Gulf Coast ULSD USD 4.992 per gallon (all EIA spot, 2026-09-22).

Why: Firmer diesel widens the RD margin, lifts generation and adds credit supply — bearish credits; the channel is mixed, so it is not carrying a clean signal this session. Structure runs the other way: 2026Q1 showed 6.93M MT credits against 9.77M MT deficits (net -2.84M MT) with a cumulative bank of 36.86M MT, published 31 July.

Desk view: Judgment — constructive CA LCFS. Flow says mixed, structure says drawdown, and we weight structure because the bank is the binding variable at this stage of the amended targets. Canada CFR: ECCC's credit-retirement data is unpublished, so our rows are an index, not a quantity; no citable market mark.

1c. RECs

No new REC development in the last 24 hours and no citable traded REC price on our tape this morning (three of twenty tracked rows carry a sourced price).

Desk view: Judgment — no firmness call on any class without a citable price. Standing read: compliance-driven, obligation-specific, and classes do not average; a solar carve-out SREC and a bundled Class I REC differ by an order of magnitude.

2. Voluntary carbon (VCM)

SBTi: no new development overnight. As standing context, the Corporate Net-Zero Standard V2.0 was published 11 June 2026 ; validations against V2.0 open 1 February 2027, V1.3.1 submissions close 31 January 2028 and V2.0 becomes mandatory 1 February 2028. Its Ongoing Emissions Responsibility framework lets companies report use of removal, reduction and avoidance credits as supplementary action, recorded separately from science-based targets.

Article 6: nothing desk-held to report this morning.

Desk view: Judgment — neutral VCM. The demand step is dated 2027-2028, not this quarter, and nothing overnight pulls it forward.

3. International

EU ETS (EUA). Primary print: EUR 86.05 (2026-09-24, latest EEX auction clearing price). Mark: EUR 86.01 (2026-09-23, most liquid futures settlement (Dec26), EUA, settlement observation), -0.8 percent vs prior same-basis mark, carried from the prior session. This morning's clearing prints essentially on top of the futures settle — no auction concession.

What moved: Nothing new overnight beyond the auction.

Why: Rows show surplus +113.7 Mt in 2027 narrowing and flipping to deficit in 2029 (-28.9 Mt) on the LRF path under Directive (EU) 2023/959; at the current TNAC the Market Stability Reserve is taking allowances in, not releasing.

Desk view: Judgment — constructive on the curve, neutral spot.

UK ETS (UKA). Mark: GBP 58.22 (2026-09-23, most liquid futures settlement (Dec26), UKA, settlement observation), +0.2 percent vs prior same-basis mark, carried from the prior session. Primary print: GBP 59.34 (2026-08-31, official monthly average UKA settlement price, Dec futures, CCM table).

What moved: No fresh UK development on our own record.

Why: Rows are deficit throughout (-2.7 Mt 2027 to -17.2 Mt 2030) under SI 2020/1265 Table B as amended by SI 2026/392, the maritime extension in force 1 July 2026; the Dec26 UKA/EUA differential is -21.2 percent in common currency, narrowing to -18.9 percent by Dec28.

Desk view: Judgment — the curve already pays for convergence; neutral outright, mildly constructive on the spread.

NZ ETS (NZU). Mark: NZD 52.00 (2026-09-17, NZU secondary spot, intraday observation), +2.0 percent across a 13-day span, not a daily move.

What moved: The 8 September auction failed — no bids, 10,400,000 units unsold, rolled to the next scheduled auction on 1 December; the third 2026 auction to fail.

Desk view: Judgment — we make the no-clear our base case for 1 December absent an MfE settings change, which caps effective supply at industrial allocation and keeps the rows in a -33 Mt-a-year deficit.

Australia (ACCU). Last print: AUD 39.03 (2026-08-14, generic ACCU spot, CER QCMR June quarter 2026 post-quarter price) — a quarterly print past its cadence, not a live mark.

Desk view: Judgment — neutral pending the next CER quarterly; rows deficit throughout on the legislated 4.9 percent baseline decline.


Correction issued 2026-09-24

Correction: five figures in the 23 September evening edition were superseded releases, one mechanism was stated backwards, and one posting date was the desk's rather than CARB's: The 23 September evening edition carried five superseded figures, stated one mechanism backwards, and gave the desk's date for a CARB posting. Editions: 23 September evening edition. Read the full correction

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Corrections & notes