Regional Greenhouse Gas Initiative

RGGI is a market-based cap and trade program designed to reduce carbon dioxide emissions from electric power plants in the northeastern and mid-Atlantic states.

Background

ENE has been a stakeholder in the Northeast governors’ negotiations concerning RGGI since they began in 2001. ENE took a leadership role among the 24 energy, business and environmental stakeholders selected for the RGGI process by preparing proposals, developing data and key information, and informing the stakeholder group about options and approaches to consider. ENE prepared the first comprehensive approach to how the RGGI rule could be designed.  ENE was instrumental in shaping the December 2005 Memorandum of Understanding between the initial seven Northeast states that agreed to participate in the program. We also engaged in efforts to implement RGGI rules in Connecticut, Maine, Massachusetts, New Hampshire, and Rhode Island through legislation or administrative rulemaking. ENE commented on policy design for offsets and auction rules. As the program proceeds through its third year, we are monitoring trends and auction results, recommending next steps, and bringing lessons learned from RGGI to the federal and regional climate policy discussions.