Members of the Regional Greenhouse Gas Initiative announced on February 7 they will reduce the allowable greenhouse gas emissions from power plants by 45 percent next year. The multi-state agreement will lower the cap on carbon dioxide emissions from 165 million tons to 91 million tons in 2014.
Changes will cut carbon dioxide emissions 45 percent below 2005 levels and preserve reductions already achieved. The 2013 cap will roughly equal the amount of carbon dioxide power plants produced in the region last year.
The six New England states, along with New York, Maryland and Delaware, agreed to further reduce the cap by 2.5 percent per year from 2015-2020 and expect to reduce emissions by another 80 to 90 million tons in coming years.
The initiative is the nation’s first market-based greenhouse gas regulatory program. Backers say it has cut emissions by 30 percent in the past several years and reduced average electricity prices by 10 percent.
Emissions have plunged as power companies switched to the less expensive natural gas rather than energy sources such as coal, which produces more carbon dioxide. Officials in participating states believe the initiative could be a national model.
Most states will channel revenue from the initiative’s auctions toward reducing electricity rates for businesses and heating costs for families.
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