“Today, ten states are taking a major step forward in the fight against global warming as they begin operations of the Regional Greenhouse Gas Initiative (RGGI), the country’s first mandatory GHG emissions market. These Northeast and Mid-Atlantic states have been pioneers at a time when federal action has been egregiously lacking. Their accomplishments have proven that emissions markets are effective and politically possible.

Significantly, RGGI primarily distributes permits via auctioning — as opposed to ‘grandfathering,’ which virtually eliminates the possibility for windfall profits at taxpayer expense.

RGGI will soon be joined by the Western Climate Initiative, which released its market design plan yesterday, and the Midwestern Greenhouse Gas Reduction Accord. Together these three markets will cover over half the U.S. population and 80 percent of Canada’s population, and are excellent examples of how a national emissions market could work.

WRI is proud to have participated in the design of all three agreements, and congratulates the governors, state legislators, and stakeholders in the RGGI states on their outstanding accomplishment.”