Carbon Purging

Regional Greenhouse Gas Initiative (RGGI, or ReGGIe) is a regional initiative by states in the Northeastern United States region to reduce greenhouse gas emissions. The RGGI is designing a cap and trade program for greenhouse gas emissions from power plants.

Ten states currently participate in the initiative. Pennsylvania, which is a major coal producer and manufacturing state, only participates as an observer.

Participating states: Maine, New Hampshire, Vermont, Connecticut, New York, New Jersey, Delaware, Massachusetts, Maryland, Rhode Island.

Observer states and regions: Pennsylvania, District of Columbia, Québec, New Brunswick, Ontario.

RGGI is implementing a cap and trade system for CO2 emissions from power plants in the member states. Emission permits will be auctioned beginning in September 2008, and the first three-year compliance period will begin on January 1, 2009. Proceeds will be used to promote energy conservation and renewable energy. The system affects fossil fuel power plants with 25 MW or greater generating capacity.

RGGI sold carbon credits on Thursday September 25, 2008 in the first of a series of quarterly online auctions. 12,565,387 allowances were sold for $3.07 per ton of carbon dioxide, bringing in a total of $38,575,738.09. It was the largest carbon auction ever. The second auction was held December 17, 2008. 31,505,898 allowances were sold for $3.38 per allowance. A third auction is scheduled for March 18, 2009.