Regional Greenhouse Gas Initiative (RGGI)

The Regional Greenhouse Gas Initiative (RGGI) is a regional cap and trade scheme for carbon dioxide emissions. The market was formed by a group of Northeast and Mid-Atlantic states in December 2005 to regulate the carbon emissions of power plants. It is the United State’s first mandatory compliance carbon market scheme and is the country’s most developed.

Member States:

  • The ten member states of the RGGI are Connecticut, Delaware, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, Rhode Island, and Vermont
  • The “observer” states are Pennsylvania and the District of Colombia and the Canadian provinces of Ontario, Quebec, and New Brunswick

Goal:

  • Cap was set at an emissions level equal to the average of 2002-2004 emissions, with the goal of maintaining that level until 2014 and an annual reduction of 2.5% per year until 2018.

Details:

  • Each state has its own emissions cap
  • Each state has the right to either auction or allocate its emissions allowances
  • Offsets could be purchased to meet 50% of emission reductions
  • Proceeds will be used to promote energy conservation and renewable energy
  • Auction of permits began in September 2008 and the first three year compliance period will begin January 1, 2009
  • Change wiki because it says CA may want to join
  • Only greenhouse gas is carbon

More information: