RGGI Funds in Action: Insights into the Allocation of RGGI Proceeds

Since its inception in 2008, the Regional Greenhouse Gas Initiative (RGGI) has generated $8.3 billion in proceed for participating states. These proceeds are used by participating states to fund programs that advance clean energy, reduce emissions, and save consumers energy and money. This Report dives into the details of RGGI proceeds generation, spending, and reporting, aiming to show where investments are currently going toward and how these allocations contribute to reducing emissions and remedying inequitable impacts. It also identifies where gaps persist in RGGI states’ deployment of program proceeds and offers recommendations on RGGI proceeds investments including environmental justice prioritization, improved reporting, and enhanced governance structures.

NEW REPORT (May 16, 2023) — Analysis Group today released the fourth independent RGGI economic report, finding that this first-in-the-nation, multi-state, cap-and-invest program delivered $669 million in net economic value and nearly 8,000 job-years from 2018-2020 to participating states.* But the report does more than review past performance; it also looks at today and tomorrow—and for the first time examines how the RGGI states are tackling environmental justice (EJ) and equity priorities.  The report provides a snapshot of what all 12 RGGI states (including VA and PA) are doing to address EJ priorities, and offers policy options that could ensure RGGI reduces health, economic and environmental inequities for overburdened communities.

Key takeaways: RGGI continues to reduce carbon pollution and deliver economic benefits for all member states, serving as a consistent engine of climate progress since RGGI started (2009), furthering a 46% reduction of carbon emissions, $5.7 billion in net economic benefits and 48,000 job-years. However positive this trend may be, more is needed to address the unequal pollution burden experienced by EJ communities. The states are recognizing this, and are taking new and innovative approaches to advance EJ and equity priorities. This report shows how RGGI can deliver on both important carbon pollution and equity goals.

*The RGGI report’s economic analysis includes only the 10 member states participating in an auction during this 4th compliance period (2018-2020), not including VA and PA. However, both Virginia and Pennsylvania are included in the discussion of key equity priorities. 

For press inquiries, contact:

Amanda Kolling | amanda@resource-media.org | 304-942-7148

Carrie Cullen | carrie@resource-media.org | 862-881-9277

For more information, contact Laurie Burt at laurie@laurieburt.com.

Additional Resources

Acadia Center’s Findings and Recommendations for the Third RGGI Program Review

In April 2023, Acadia Center released its third RGGI Review report, which analyzed the programs impacts to date and offers recommendations for adjusting RGGI in coming years. Acadia Center’s analysis found that the nine states which have consistently participated in RGGI have experienced a more rapid increase in GDP per capita and a more rapid decline in power sector CO2 emissions and retail electricity prices than other states. RGGI has significantly contributed to state efforts to reduce climate pollution and benefit consumers. However, the report recommends RGGI address the impacts of power plant pollution on local communities, as these communities are disproportionately impacted by NOx emissions which have detrimental health impacts.