Donate Newsletters
Home » Climate + Energy » RGGI Delivers

RGGI Delivers

SwatchJunkies

March 15, 2011

I’m not big on parroting press releases, but I’m going to make an exception for RGGI, the northeast’s carbon cap-and-trade program. RGGI is quietly demonstrating that carbon markets can work wonderfully. So it’s too bad no one seems to be paying attention any longer.

Last week, RGGI’s most recent auction netted $83 million, for a lifetime total of nearly $861 million. The vast majority of that money is channeled into energy efficiency and job creation with immediate and tangible results.

For example:

Maine is investing a portion of its RGGI proceeds to implement large-scale energy efficiency projects in commercial and industrial facilities…  the project will enable the Dixfield sawmill to produce 25 percent of its electricity on site, saving enough money to sustain 235 jobs. Moose River Lumber anticipates adding at least three jobs while retaining the 66 full-time and 5 part-time workers currently employed.

Maryland is investing RGGI proceeds to help the state’s farmers control their energy budgets… The program… will save the farmers a collective total of more than $15 million in energy costs over the lifetime of the projects.

In New York, RGGI proceeds are a catalyst, leveraging federal, state and private investments to revitalize local economies. For example, the Village of Patchogue on Long Island used $27,000 in RGGI proceeds to identify energy efficiency opportunities as part of a proposal to upgrade its waste water treatment plant. This analysis made Patchogue eligible for $11.4 million in federal and state funds, which it received for its proposed upgrade.

There’s much more in a new report “Investment of Proceeds from RGGI CO2 Allowances,” which thoroughly documents the program’s investments. It’s encouraging stuff. Or it would be, if there was any serious conversation afoot to expand RGGI geographically or sectorally.

Some critics accuse RGGI of falling short because its allowance prices are low—just $1.89 for a ton of CO2 as of last week’s auction. There’s a fair, if limited, point to make on that score. It’s true that RGGI’s carbon budget is presently generous enough that during this recessionary period it’s not creating a meaningful reduction of carbon emissions beyond what would have happened anyway.

But it’s also worth remembering two things. First, one of the virtues of market pricing for carbon is that the price eases off when times are tough, just as it ratchets up when demand for carbon is high. That’s a smart feature for the climate and the economy. Second, even with carbon prices so low that they’re virtually undetectable, the northeast states—and their residents and businesses—are reaping important dividends in job growth and energy cost savings by investing in efficiency. That’s a win no matter how you slice it.

Want more success stories from RGGI? Please see “The Real Cost of Cap and Trade,” “Grading RGGI’s First Year,” and “CAP on RGGI.”

Talk to the Author

SwatchJunkies

Talk to the Author

SwatchJunkies

.

About Sightline

Sightline Institute is an independent, nonpartisan, nonprofit think tank providing leading original analysis of democracy, forests, energy, and housing policy in the Pacific Northwest, Alaska, British Columbia, and beyond.

1 thought on “RGGI Delivers”

  1. So, I clicked on the links, but I still don’t understand how a small carbon sink can sell credits through RGGI—or anyplace else, for that matter.We are a co-op organic farm. We make our own biodiesel from restaurant waste, and make fuel alcohol from our own fruit. We planted a tree a day last year, and we heat from wood.This is sorta like peeing while wearing dark pants—you get a warm feeling, but nobody notices. How can we get some meagre credit for our CO2 capture?

Comments are closed.

For press inquiries and interview requests, please contact Martina Pansze.

Sightline Institute is a 501(c)3 non-profit organization and does not support, endorse, or oppose any candidate or political party.

You can power us forward on sustainable solutions.

See an error? Have a question?

Find the author's contact information on our staff page to reach out to them, or send a message to editor@sightline.org.

Privacy Overview
Sightline Institute

This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognizing you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful.

Strictly Necessary Cookies

Strictly Necessary Cookie should be enabled at all times so that we can save your preferences for cookie settings.

If you disable this cookie, we will not be able to save your preferences. This means that every time you visit this website you will need to enable or disable cookies again.

3rd Party Cookies

This website uses Google Analytics to collect anonymous information such as the number of visitors to the site, and the most popular pages.

Keeping this cookie enabled helps us to improve our website.

Additional Cookies

This website uses social media to collect anonymous information such as which platform are our users coming from.

Keeping this cookie enabled helps us better reach our audiences.