Regional State Governors will be meeting to decide on an extension through 2020 for their states’ cap-and-trade initiative, the Regional Greenhouse Gas Initiative or RGGI. RGGI covers power plants in Connecticut, Delaware, Maine, Maryland, New Hampshire, New York, Rhode Island and Vermont and is the nation’s first regional, market-based initiative designed to reduce greenhouse gas emissions in the electric power sector. Investors, including Friends Fiduciary, joined with companies, including Autodesk, Eileen Fisher, Staples, Inc., Stonyfield and others, to urge the governors to tighten the annual carbon emissions cap under the program by five percent per year. By continuing to set ambitious emissions targets the states in RIGGI will further promote transitioning to a low carbon economy.
RGGI is generally regarded as a success story for encouraging change. It has been an efficient and effective means for reducing greenhouse gas emissions while providing revenue for states to invest in energy efficiency and other programs. Further, the clean energy and energy efficiency projects under RGGI have helped reduce electricity rates by an average of 2%.
Long-term commitments, such as the extension under consideration, are essential for utilities and other companies to allocate capital over time. RGGI has helped to reduce power emissions in the affected states by 30 percent while the regional economies grew over 24 percent according to a report from the Acadia Center. It has also helped raise more the $2.5 billion in revenue for clean energy and energy efficiency projects.
Friends Fiduciary believes that forward thinking initiatives such as RGGI are essential for addressing climate change and providing opportunity and incentives for a lower carbon future.