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Regional Greenhouse Gas Initiative (RGGI) |
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Regional Greenhouse Gas Initiative (RGGI) is a combined effort of 10 mid-Atlantic and northeast US states to curtail emission of greenhouse gases. The initiative is an amalgamation of individual carbon dioxide budget trading programs in the participating states.
Regional Greenhouse Gas Initiative (RGGI) represents a combined effort of 10 mid-Atlantic and northeast US states to confine the emission of greenhouse gases. It is a market based carbon dioxide emission reduction program. RGGI is mandatory and is a pioneer in combating the specter of global warming.
RGGI includes the states of Maine, New Hampshire, Connecticut, New York, Vermont, New Jersey, Rhode Island and Delaware. These 10 states will control carbon dioxide emissions from the power sector. They also aim for a 10% reduction in emissions by 2018.
Procedures
RGGI states pursue a cap and trade market based technique that includes:
- Provide a market based auction for emissions. Trading is also allowed. Electric power generators may trade, sell and purchase carbon dioxide emission allowances.
- Providing carbon offsets in order to assist companies meet their compliance obligations.
- Create a multi-state budget for carbon dioxide emissions or cap. The cap will gradually decrease until is 10% lower than the initial reading.
The Regional Greenhouse Gas Initiative is made up of separate CO2 budget trading programs in the ten participating states. The ten programs are based on a RGGI model rule and are interconnected through reciprocity of CO2 allowance. The amalgamated state programs will function as a single compliance market at a regional level for carbon emissions.
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