As voters reject repeal of climate law, CO2 tax price nearly doubles

Washington’s CO2 tax jumped after the failure of I-2117, likely increasing gas and energy prices compared to neighboring states. The price increase could double the impact on gas prices, increasing to about 45 cents per gallon.

The CO2 tax is set at auctions and on private markets when organizations covered by the law, including the University of Washington, BP oil, and the City of Enumclaw, purchase allowances covering their emissions.

Immediately after voters decided to keep Washington’s tax on CO2 emissions, allowance prices on the private market jumped by more than 10% to about $57 per met...