New report details sustained economic and environmental gains enjoyed by states participating in regional carbon cap-and-trade market.
The Regional Greenhouse Gas Initiative, known as RGGI, continues to succeed at reducing pollution, creating jobs, and boosting economies for all participating states. It’s no wonder that Virginia will soon add its name to the RGGI states, New Jersey is in the process of rejoining, and that states are exploring ways to reap the benefits of carbon markets to drive investments in transit and cleaner mobility options.
A new report released last month by the Analysis Group found that, over the past three years, RGGI helped grow participating states’ economies by $1.4 billion, while adding 14,500 job-years (equivalent to full-time jobs for one year of employment). Nine states participate in RGGI, including the six New England states plus New York, Delaware, and Maryland. Key findings from the report are detailed in the infographic below.
RGGI is a cap and trade program; it requires energy producers that emit carbon dioxide to buy pollution allowances through an auction process. This means that they must internalize some of the costs of carbon pollution related to fossil fuels. It also incentivizes investment in cleaner fuel sources.
Altogether, since the program was implemented in 2009, the nine RGGI states have collected $2.8 billion in auction proceeds. States typically use RGGI auction revenues to pay for energy efficiency and clean energy programs – a “cap-and-invest” approach that further cuts emissions, reduces energy costs, and creates jobs. When states invest RGGI proceeds in energy efficiency, they get the biggest “bang for the buck” as they add more businesses and jobs in activities such as energy audits and installing energy-efficiency equipment. RGGI also helped reduce by $1.37 billion the amount of money sent out of the region to import fossil fuels.
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