When the Regional Greenhouse Gas Initiative (RGGI), the cap and trade program for greenhouse gas (GHG) emissions from large power plants in 9 Northeast states, was first implemented, the states in the group participated with trepidation. They all wanted a program that would be effective in reducing greenhouse gas emissions, encourage investment and implementation of renewable and other clean energy options, result in funds that would be invested in energy research and implementation of more efficient options to the public, and examine whether a carbon trading system can actually work. But would RGGI work and be a “laboratory”, a model for other states or the federal government to mimic. There were modest goals and flexible plans to allow goals to be met with as little financial damage or inconvenience as possible. The hope was that they would have early success and perhaps make adjustments with revised, “tougher” goals after the first few years and that other groups of states or the federal government would expand its provisions and goals into a nationwide movement.
The RGGI organization recently released a new report “The Investment of RGGI Proceeds Through 2014” (http://rggi.org/docs/ProceedsReport/RGGI_Proceeds_Report_2014.pdf).
Its conclusions:
• GHG emissions have decreased by over 45% since 2005. This occurred while the regional Gross Domestic Product increased by about 8% in that time period, and despite a major recession. One can have energy reduction and environmental progress, while economic growth occurs.
• The total value of RGGI investments reached $1.37 billion through 2014, money that would likely not been invested in energy or other research.
• 58% of RGGI investment went to energy efficiency, with an expected lifetime energy savings of $3.62 billion.
• 13% of RGGI investments went to clean and renewable energy research and other initiative, with an expected lifetime energy savings of $836 million.
In addition, RGGI achieved its GHG emission reduction goal of 10% reduction from the mid-2000’s baseline several years early. RGGI will almost certainly be modified and extended with the hope of bringing in power plants in other states for the benefit of all.
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