Regional Greenhouse Gas Initiative

RGGI, the Regional Greenhouse Gas Initiative, is a joint effort of 10 Northeastern and Mid-Atlantic states to cap and reduce emissions of carbon dioxide from fossil fuel–fired power plants. Carbon dioxide is one of the main greenhouse gases causing global warming.

RGGI was the first mandatory cap-and-trade program in the United States, holding polluters accountable for the impact their emissions have on the changing climate. The RGGI states set a limit, or cap, on carbon dioxide emissions in the 10-state region. They then issued as many allowances — certificates that allow a power plant to emit one ton of carbon dioxide — as the cap allows.

Cap-and-trade programs in other countries have dispensed these allowances for free. RGGI set an important precedent, one that should be replicated on the federal level, by auctioning the vast majority of allowances and reinvesting the proceeds in energy efficiency to reduce emissions while cutting the program’s costs.

Conservation Law Foundation was deeply involved in the creation of RGGI and has been tracking its implementation. For example, across New England, CLF has been ensuring that proceeds from the RGGI auction are used to support energy efficiency measures that reduce electricity usage and save consumers money.

CLF is continuing to play an active role in RGGI’s success, including laying the groundwork for a 2012 program review required by the original RGGI agreement. RGGI has been extraordinarily successful in accomplishing its original goals to improve energy efficiency and create jobs; through the review process, CLF aims to shape the program to be even more effective.

For more on RGGI visit www.rggi.org.