The RGGI is a cooperative effort by states in our region to reduce carbon dioxide (CO₂) emissions—an important step in helping reduce human-induced climate change. In fact, RGGI will be the first mandatory cap-and-trade program in the U.S. aimed at reducing greenhouse gas emissions. The effort will initially be aimed at reducing CO₂ emissions from power plants in participating states, while maintaining energy affordability and reliability. Once up and running, states may consider expanding the program to include other sources of emissions, not just power plants, and greenhouse gases other than CO₂. Currently, participating states include: Delaware, Maine, New Jersey, Vermont, Maryland, New York, Connecticut, Rhode Island, Massachusetts, and New Hampshire.

RGGI states are busy developing a regional strategy for controlling greenhouse gas (GHG) emissions. A regional strategy will be more effective in controlling emissions, which are not bound by state or national borders. To achieve this goal, the program will implement a multi-state cap-and-trade program with a market-based emissions trading system. The cap-and-trade permit program will cap (limit) the total amount of GHG emissions each year in order to meet a specific environmental target. Each state is allocated a certain amount of GHG emissions (called “permits” or “allowances”) based on historical emissions and negotiation among the signatory states. States then will sell (auction) their allowances directly to electric generators in a competitively wholesale market process.