As climate focus shifts to states, East Coast partnership offers model for multi-state collaboration

A trailblazing regional greenhouse gas partnership on the East Coast is considering possible changes or expansion that would allow it to keep building on its success — and the stakes grew higher last month with the reelection of Donald Trump.

The 11-state Regional Greenhouse Gas Initiative, established in 2005, is the country’s first regional cap-and-invest system for reducing carbon emissions from power generation. Since 2021, administrators have been conducting a program review, analyzing its performance since the last review in 2017 and weighing potential adjustments to make sure it continues to deliver benefits to member states.

“RGGI has not only been an effective climate policy, it’s been an extraordinary example of how states can work together on common goals,” said Daniel Sosland, president of climate and energy nonprofit Acadia Center. “It is a major vehicle for climate policy now in the states, more than it might have seemed before the election.”

The RGGI states are also contemplating a possible change to the compliance schedule that would require power generators to acquire allowances worth 100% of their carbon emissions each year, and certify compliance annually. The current system calls for certification every three years, and only mandates allowances equivalent to half of carbon emissions for the first two years of each period.

The program is looking for ways to appeal to potential new participant states that have less aggressive decarbonization goals than current member states without watering down the program’s overall impact on decarbonization, said Acadia Center policy analyst Paola Tamayo. Acadia suggested possible program mechanisms such as giving proportionately more allowances to states with more stringent emissions targets to incentivize tighter limits.

“At this point it is critical for states to maintain a high level of ambition when it comes to programs like RGGI,” Tamayo said. “There are different mechanisms that they can implement to accommodate other states.”

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