The Regional Greenhouse Gas Initiative (RGGI) is the first mandatory market-based program in the United States intended to reduce greenhouse gas emissions.
Regional Greenhouse Gas (RGGI) allowance clearing price (Jan 2008-Dec 2019)The Regional Greenhouse Gas Initiative (RGGI) is the first mandatory market-based program in the United States intended to reduce greenhouse gas emissions. RGGI was formed as a cooperative effort among 10 northeastern states to cap and reduce carbon dioxide (CO2) emissions from the participating states’ power sectors. RGGI CO2 emission allowances are available to affected companies and other interested parties at quarterly auctions.
RGGI held its 46th quarterly allowance auction on December 4, 2019, resulting in a clearing price of $5.61 per short ton for the 13.1 million tons of CO2 allowances sold. The December clearing price was almost the same as the June 2019 price—the highest since December 2015—and 5% higher than the $5.35 per short ton price at the December 2018 auction.
RGGI began in 2009 as a cooperative effort among 10 states: Connecticut, Delaware, Maine, Maryland, Massachusetts, New Hampshire, New York, Rhode Island, New Jersey, and Vermont. RGGI is implemented through CO2 Budget Trading Programs in each participating state. The RGGI CO2 cap is a regional budget for CO2 emissions from the power sector and represents the total of all 10 state program targets. Pennsylvania’s and Virginia’s state legislatures are considering RGGI membership; New Jersey left the initiative in 2012 but reentered in 2018.
