From: Watts Up With That

By: Roger Caiazza

Date: July 2, 2023

RGGI Investment Report Lessons for Cap and Invest Programs

Cap-and-invest emission reduction programs are supposed to effectively reduce emissions and generate revenues. The Regional Greenhouse Gas Initiative (RGGI) is an electric sector cap-and-invest program in the NE United States that can provide insight into the potential of these programs. This post reviews the latest RGGI annual Investments of Proceeds report to determine how well the investments are producing emission reductions and the lessons that should be kept in mind from the observed results.

Background

RGGI is a market-based program to reduce greenhouse gas emissions. According to RGGI:

"The Regional Greenhouse Gas Initiative (RGGI) is a cooperative effort among the states of Connecticut, Delaware, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island, Vermont, and Virginia to cap and reduce power sector CO2 emissions.

RGGI is composed of individual CO2 Budget Trading Programs in each participating state. Through independent regulations, based on the RGGI Model Rule, each state’s CO2 Budget Trading Program limits emissions of CO2 from electric power plants, issues CO2 allowances and establishes participation in regional CO2 allowance auctions. (continue reading)

RGGI Investment Report Lessons for Cap and Invest Programs