RGGI has been operational for over a decade, cutting climate pollution from power plants in half in member states. The program uses a market-based approach that sets a total limit on pollution for the region that declines over time. Polluters must then purchase an “allowance” for each ton of pollution they produce. This compels companies to invest and innovate to reduce their pollution, including by switching to cleaner forms of power generation, advancing energy efficiency, creating programs to manage electricity usage, and more. There are numerous protections in place to ensure the price of allowances remains stable and predictable, and every independent market monitoring report of the decade-long program has found that the market has functioned smoothly.

There are currently 11 mid-Atlantic and Northeastern states in RGGI, with diverse energy production and needs, but all are driving carbon emissions down using this flexible, market-based approach in ways that suit the unique needs of each state. RGGI’s historic reductions in climate pollution have been achieved twice as fast as the nation as a whole. This success shows the power of setting firm emissions limits and letting polluters determine how best to meet those limits, while giving states the flexibility to reinvest the proceeds from the program.