Image credit: ISO New England dispatch control board.
RGGI Continues to Deliver Economic Benefits for the Member States -- and Can Advance Key Equity Priorities in EJ Communities.
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.
States are leading efforts to address climate change in new and innovative ways. As part of these efforts, states recognize the adverse impact that climate change has on disadvantaged populations, and the need to integrate equity considerations into climate change and clean energy policies.
Image Credit: Jessica Kourhounis/Getty Images
On September 5th, 2019, experts at Rutgers University released Field Notes: Equity and State Climate Policy, an independent study based on more than 70 interviews with state officials, stakeholders and advocates. Led by Jeanne Herb and Marjorie Kaplan of Rutgers, this report takes an in-depth look at the challenges and opportunities faced by states in the Regional Greenhouse Gas Initiative (RGGI) region to direct program benefits to disadvantaged communities and individuals in equitable ways. This independent study, part of the RGGI Project Series, provides a comprehensive review of initiatives underway in the states participating in RGGI (ME, NH, VT, MA, RI, CT, NY, MD and DE), NJ and VA as well as two states (CA and IL) and two cities (Austin, TX and Columbus, OH) outside the Mid-Atlantic and Northeast region.
The report finds the states in an active “period of innovation”, trying pilots and new approaches to address this intersection of equity and state climate policy, from which best practices will emerge. The study also includes perspectives from many equity, environmental justice and environmental leaders on state policies and practices that enhance participation and benefits for disadvantaged communities and households. The report provides a valuable resource for the states and stakeholders to learn from each other, as they continue to advance equity and climate progress.
For more information, contact Laurie Burt at laurie@laurieburt.com.
For press inquiries, contact Adam Bink via abink@spitfirestrategies.com or 415-495-4200 x113.
BY DALLAS BURTRAW, KAREN PALMER, ANTHONY PAUL, AND PAUL PICCIANO
MAY 2019
BY KATE KONSCHNIK | MAY 2019
Supported by the RGGI Project Series, and co-hosted by Duke University’s Nicholas Institute for Environmental Policy Solutions, Georgetown Climate Center and Resources for the Future, the workshop featured three expert panels ranging from “basics” on the RGGI carbon trading program to the “why & how” Virginia and New Jersey plan to link with or join RGGI, and finally public & private sector perspectives on the “building blocks” for successful linking between states.
The workshop/webinar was well attended by almost 270 diverse participants in-person and online, [with enthusiastic exchanges between panelists and with the audience]. The event provided a content-rich learning opportunity for other states that may want to link or implement a separate carbon trading program
The video event and links to the program are on posted the Duke Nicholas and Resources for the Future websites, and are available below:
Sept. 6, 2018
New Jersey and Virginia are on track to join the Northeast’s carbon trading program in 2020, with final rules expected to be released later this year and adopted in 2019.
Both states are in discussions with the Regional Greenhouse Gas Initiative on the details of linking up with the nine-state cap-and-trade program, state environmental regulators said Sept. 6 at a conference.
Read more (Note: Bloomberg subscription required)
Sept. 6, 2018
New Jersey and Virginia have nearly finished establishing their respective carbon trading regulations, but those rules remain contingent on final negotiations with RGGI over the two states’ emissions cap levels, officials said Thursday.
Read more (Note: Carbon Pulse subscription required)
10 a.m.—Welcome and Introduction
Karen Palmer, Resources for the Future
Laurie Burt, RGGI Project Series
10:10 a.m.—State Carbon Trading: the RGGI Example
Franz Litz, Litz Energy Strategies LLC
10:20 a.m.—Panel 1: Linking in Action: Virginia, New Jersey, and RGGI
Moderator: Vicki Arroyo, Georgetown Climate Center
Ben Grumbles, Maryland Department of Environment and RGGI, Inc.
Chris Bast, Virginia Department of Environmental Quality
Debbie Mans, New Jersey Department of Environmental Protection
11:15 a.m.—Panel 2: The Building Blocks for Successful Linking
Moderator: Kate Konschnik, Duke's Nicholas Institute for Environmental Policy Solutions
Carrie Jenks, MJ Bradley & Associates
Valerie Gray, Delaware Department of Natural Resources & Environmental Control
Kathleen Robertson, Exelon
Dale Bryk, Natural Resources Defense Council
12:10 p.m.—Closing Remarks
Kate Konschnik, Duke's Nicholas Institute for Environmental Policy Solutions
12:15 p.m.—Adjourn and Lunch Available
BY ANALYSIS GROUP | 2015-2017, 2012-2014, 2009-2011
In a series of reports covering the lifetime of RGGI, the Analysis Group, an independent research group, uses real time historical data to assess the economic impacts of the trading system. In this process, they address these critical questions:
How has the RGGI program affected electricity markets, power producers’ costs, electricity prices, and consumers’ electricity bills?
What happened to the roughly $XX billion in proceeds collected over these three periods (2009-2011, 2012-2014, 2015-2017) from the sale of CO2 allowances?
Has the program continued to produce net economic benefits to these states, or otherwise helped them pursue their goals for reliable electric supply and CO2-emissions reductions?
What has been learned to date?
The unprecedented reports rigorously track the path of RGGI-related dollars as they leave the pockets of competitive-power generators who buy CO2 allowances to demonstrate compliance, show up in electricity prices and customer bills, make their way into state accounts, and then roll out into the economy through various pathways.
The third in-depth comprehensive analysis on RGGI’s economic performance, this report finds – once again – a consistent trend of positive net economic value. The Analysis Group tracks the most recent three-year compliance period (2015-2017), and examines the empirical economic data.
KEY FINDINGS
RGGI states reaped $1.4 billion in net economic value from the Program’s implementation in 2015 through 2017.
Over the same time period, RGGI is credited with creating over 14,500 new job-years (the equivalent of one full-time job for the duration of one year).
All of the participating RGGI states experienced benefits, including employment growth and net economic benefits for electricity consumers, with those dollars flowing back into the local economy.
The second in a series of economic analyses by the Analysis Group, this report examines the impacts of RGGI for the period 2012-2014, the second compliance period, and finds that the multi-state, market-based approach to cutting carbon emissions provides economic benefits and valuable lessons to other states as they evaluate their options for cutting carbon.
KEY FINDINGS
Added $1.3 billion in economic value to the nine-state RGGI region.
Will lead to more than 14,000 new jobs.
Reduced electricity and heating bills, saving consumers $460 million.
Provided each individual state economic benefits as the region cuts annual carbon emissions by more than a third from 2008 (133 million tons) to 2014 (86 million tons).
Reduced dollars flowing out of state to pay for fossil fuels imported from outside the region by more than $1.27 billion.
While prior analyses were based on projections of RGGI performance, this report provides the first comprehensive analysis of actual RGGI performance based on real data. It found that RGGI generates greater economic growth in every one of the 10 RGGI states than would occur without a carbon price. Given that the purpose of RGGI is to reduce carbon, not generate economic growth, this analysis received widespread media coverage and had a dramatic impact on public understanding of the trading system, not just among RGGI stakeholders and policymakers, but also in states weighing the risks and benefits of a price on carbon.
KEY FINDINGS
$1.6 billion in growth
$912 million in allowance proceeds
$1.3 billion in energy savings to consumers
Power plant owners lose $1.6 billion in revenue
$765 million kept in local economy
16,000 net jobs created
BY RESOURCES FOR THE FUTURE | AUGUST 2017
As RGGI states began their second program review, they grappled with ongoing frequent low allowance prices, and debated design adjustments to improve trading program efficiency and effectiveness. The RGGI Project Series recognized a critical gap in research and commissioned independent modeling analysis of an innovative mechanism – the Emissions Containment Reserve (ECR) – that incorporates a minimum price for specified quantities of allowances under the cap and thereby introduces graduated steps into the allowance supply function.
Conducted by the expert research group Resources for the Future, this in-depth technical analysis uses simulation modeling, economic experiments and expert market testing to explore the implications of introducing an ECR and varying its design parameters.
The new Model Rule includes the first ECR for a carbon-trading program.
BY ANALYSIS GROUP | July 12, 2017
Over the past nine years, the RGGI states have successfully operated a voluntary program for limiting CO2 emissions through mass-based allowance trading. Now, the nine states involved in the program are considering opening the door to expanded trading opportunities for power plants located both inside and outside the RGGI states.
In an update to the Analysis Group’s 2016 report on the nine-state Regional Greenhouse Gas Initiative (RGGI) trading program, Paul J. Hibbard and Ellery Berk identify principles and objectives for program design changes that RGGI states might incorporate to enable broader trading.
BY M.J. BRADLEY & ASSOCIATES | FEBRUARY 2017
This comprehensive historical narrative, captured in the report and told in the companion video, tells the compelling story behind the genesis of RGGI. George Pataki, a Republican, as Governor of New York, reached out to fellow Governors, across the aisle and the region, to envision a market-based way to reduce carbon emissions and reliance on fossil fuels. Leading experts and RGGI state officials provide a window into that exciting moment in time: the demands and decisions, perils and possibilities. One decision proved fateful and all important to RGGI’s success: auctioning allowances rather than giving them away for free.
ABT ASSOCIATES | JANUARY 2017
Arguably the most comprehensive analysis of RGGI’s health impacts ever produced, this report addresses the much-debated issue of whether and how much carbon reduction affects air pollution. Using publicly available peer-reviewed air quality and public health models, along with historical data characterizing RGGI’s actual performance over six years (2009-2014), ABT Associates, independent health experts, addressed these critical questions:
KEY FINDINGS
BY M.J. BRADLEY & ASSOCIATES | OCTOBER 2016
The Northeast states are at the vanguard of changes transforming the way electricity is produced and delivered in the U.S. The report, Power Switch, and its companion video, by M.J. Bradley & Associates, explores the trends reshaping the Northeast electric power markets, as well as future challenges and opportunities for states in the region.
Advancements in technology combined with low gas prices and policy changes have and will continue to create significant changes within the electric power markets. In New York and New England, for example, coal-fired generation has declined by more than 80% since 2005. The Northeast states have been successful in cutting carbon pollution from the electric sector while growing their economies. Now these states are eyeing economy wide reductions, requiring more policy innovation and clean energy investment. The future of the electric system will include more interconnected devices, more intermittent renewables, and a smarter, nimbler, more distributed grid.
In this report and companion video, M.J Bradley & Associates, a premiere expert research firm, captures the disruptive power of technology and policy innovation and lays out the challenges and opportunities that lie ahead for the Northeast states.
BY ANALYSIS GROUP | JULY 12, 2016
In 2016, when the nation was moving to implement the EPA’s Clean Power Plan, the RGGI Project Series recognized the need for analysis of the design features of the RGGI carbon-trading program, to facilitate choices for states including the option to engage in carbon trading on a national basis.
Today, this report is as relevant as it was in 2016. While the federal program has been stayed by the new Administration, states continue to implement their plans to reduce carbon emissions.
This report, produced by the Analysis Group, identifies the core issues in emission-allowance trading for the RGGI program and how these can be adapted to trading w/ other states. The observations about an expanded state-to-state carbon trading market and lessons learned from the first-in-the-nation multi-state RGGI trading program continue to inform state action.
BY GEORGETOWN CLIMATE CENTER
With support from the RGGI Project Series, the Georgetown Climate Center developed this highly interactive online tool to provide policymakers, reporters and the public with critical information, insights and data visualization about each state’s electricity grid mix, renewable energy growth, economic impacts and carbon emission reductions.
A new feature includes comparative charts that plot each state’s gross domestic product along with carbon emissions, as well as new comprehensive data for each state on the transportation sector. All data is sourced from publicly available independent or government entities.
BY RESOURCES FOR THE FUTURE | APRIL 2013
National and subnational economies have started implementing carbon-pricing systems unilaterally, from the bottom up. Linking these systems offers several potential benefits including enhancing cooperation among jurisdictions, enlarging the portfolio of options available for emissions reductions, and lowering overall costs.
Linking by Degrees: Incremental Alignment of Cap-and-Trade Markets outlines a unique approach based on analysis that many of these benefits could be achieved through incremental alignment of climate policies across jurisdictions. In fact, such alignment might generally be a precondition for expanding the coordination that ultimately results in linking carbon markets.
Published in 2013 by Resources for the Future (RFF), this report has had broad and significant impact on carbon markets worldwide. Cited in 56 scholarly articles and reports, Linking by Degree articulates an approach to linking carbon-pricing programs that has been embedded in national and subnational agreements and carbon markets, including the Paris Accord.
