Power Plant Emissions Greatly Reduced by RGGI States
The nine states currently participating in the Regional Greenhouse Gas Initiative (RGGI) have announced that the RGGI cap for this year will be 91 million tons, which will be a 45 percent reduction.
After completing revisions to state CO2 Budget Trading Programs, the nine RGGI states announced that the 2014 RGGI cap will be 91 million tons, which will nearly cut emissions in half. The states also plan to reduce the cap by 2.5 percent each year from 2015 to 2020––CO2 pollution is expected to be half of 2005 levels in all nine states.
Under the new cap, the first CO2 allowance auction will be held on March 5, 2014.
“RGGI has once again proven that state leadership provides the laboratory for innovation,” said Kenneth Kimmell, commissioner of the Massachusetts Department of Environmental Protection and chair of the RGGI, Inc. Board of Directors. “RGGI is a cost-effective and flexible program that can serve as a national model for dramatically reducing carbon pollution for other states throughout the nation.”
The RGGI states have also announced interim adjustments to the cap, which will help account for the private bank of allowances help by market participants before the new cap began.
“The RGGI cap reduction, along with other changes to the program, will help the RGGI states further reduce carbon emissions while fueling clean energy economic development by funding investments in energy efficiency and renewable energy,” said Collin O'Mara, Secretary of the Delaware Department of Natural Resources and Environmental Control and Vice-Chair of the RGGI, Inc. Board of Directors. “Last year, each of the nine states pledged to propose regulatory changes to lower the cap. Each state stepped up to the plate and got the job done.”
For more information on the auction, please click here.