Regional Greenhouse Gas Initiative

an initiative of the Northeast and Mid-Atlantic States of the U.S.

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Program Design

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The Regional Greenhouse Gas Initiative (RGGI) is a cooperative effort among the states of Connecticut, Delaware, Maine, Maryland, Massachusetts, New Hampshire, New York, Rhode Island, and Vermont to cap and reduce power sector CO2 emissions.

RGGI is composed of individual CO2 Budget Trading Programs in each participating state. Through independent regulations, based on the RGGI Model Rule, each state's CO2 Budget Trading Program limits emissions of CO2 from electric power plants, issues CO2 allowances and establishes participation in regional CO2 allowance auctions.

In December of 2017, the RGGI states completed a regional Program Review, which enabled the RGGI states to gather input from stakeholders and experts relating to the program's design, and has resulted in an updated 2017 Model Rule. The changes between this rule and the prior (2013) Model Rule are compiled in the Summary of Model Rule Updates. States will next begin state-specific processes to bring these changes into effect.

Regulated power plants can use a CO2 allowance issued by any participating state to demonstrate compliance with an individual state program. In this manner, the state programs, in aggregate, function as a single regional compliance market for CO2 emissions.

RGGI is the first mandatory, market-based CO2 emissions reduction program in the United States.