Regional Greenhouse Gas Initiative (RGGI), a cap-and-trade program that targets carbon dioxide emissions in the power sector.

This initiative requires power plants with a capacity greater than 25 megawatts to obtain an allowance for each ton of carbon dioxide they emit annually. Power plants within the region, needing to offset their emissions, may comply by purchasing allowances from quarterly auctions, other regional generators, or offset projects. Power generating facilities located in 11 states (CT, DE, ME, MD, MA, NH, NJ, NY, PA, RI, VT, and VA) are required to offset all emissions with carbon allowances and offsets.

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Protect your margins from the impacts of rising compliance obligations

Certain projects that reduce CO2 and other greenhouse gas emissions outside of RGGI regulations may be eligible for awards of RGGI CO2 offset allowances.

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The process of implementing RGGI in a state can be simplified into three steps:

First, states set a cap on the amount of allowable CO2 emissions from a plant.
The state sells allowances to power plants per unit of carbon emission at their plant to ensure the cap is satisfied.
The state uses the revenue from the sale of allowances to reinvest in the state economy.

Stay informed on alerts and the status of the Pennsylvania RGGI by reviewing the RGGI Timeline or subscribing to our alerts below.

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RGGI Cost Containment Reserve

RGGI is designed with three mechanisms to contain pricing:

Cost Containment Reserve (CCR), Emissions Containment Reserve (ECR), and Minimum Reserve Price (the auction floor). Of the three above mechanisms, only the CCR works to mitigate rising costs.

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