The Regional Greenhouse Gas Initiative (RGGI) is a market-based program aimed at reducing greenhouse gas (GHG) emissions in the United States. It is a cooperative effort among several states located in the Northeast and Mid-Atlantic regions. RGGI is known as the first mandatory cap-and-trade program for carbon dioxide (CO2) emissions in the country.
Under the RGGI program, participating states set a cap, or limit, on the amount of CO2 emissions that power plants with a capacity of 25 megawatts or more can emit. This cap decreases over time, promoting emission reductions. Power plants must hold emission allowances equivalent to their CO2 emissions. These allowances are distributed either through auction or allocation, and power plants can trade them within the RGGI market.
RGGI aims to decrease CO2 emissions while promoting clean energy sources and energy efficiency measures. Revenues generated from the CO2 allowances auctions are invested in various programs, such as renewable energy projects, energy efficiency initiatives, and assistance to low-income households for energy bills.
The program's objectives are to combat climate change, minimize air pollution, foster regional collaboration, and advance sustainable development. RGGI has been considered a successful model for other states and regions seeking to implement similar GHG reduction programs.
Overall, RGGI is a regional initiative involving multiple states that places a cap on CO2 emissions from power plants and establishes a market for trading emission allowances. It aims to reduce greenhouse gas emissions, encourage clean energy, and foster collaboration in addressing climate change.
