Regional Greenhouse Gas Initiative

RGGI, the Regional Greenhouse Gas Initiative, is a joint effort of 9 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 9-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 continued to play an active role in RGGI’s success, including laying the groundwork for a 2012 program review required by the original RGGI agreement. In February of 2013, RGGI announced it would strengthen the cap on carbon emissions from power plants in the Northeast and Mid-Atlantic states – from 165 million tons down to 91 million tons (2012 levels). While this is an important step toward meeting the climate imperative of an 80% reduction in greenhouse gas emissions by 2050, it is important to note that much more work must continue to be done. RGGI has been extraordinarily successful in accomplishing its original goals to improve energy efficiency and create jobs and CLF aims to continue to shape the program to be even more effective in reaching the 2050 goal.

For more on RGGI visit www.rggi.org.