Policy Primer: Carbon Pricing

As the Biden administration takes action to address climate change through federal policies including rejoining the Paris Agreement and increasing the social cost of carbon, states continue to strengthen existing carbon pricing programs and advance new initiatives. State-level activity on emission-trading programs and carbon pricing is expected to remain on the rise as more jurisdictions embrace policy goals to transition to a lower-carbon power system and economy.

RGGI Reduces Carbon Cap to Account for Banked Allowances

The member states of the Regional Greenhouse Gas Initiative, or RGGI, on March 15 announced the third adjustment for banked allowances held by market participants for the five-year period from 2021-2025. The adjustment is a reduction in the number of carbon allowances that is being sold over the period. The amount of the reduction is…...

RGGI Generates Nearly $180 Million in First Carbon Auction After Virginia’s Entry

The 51st quarterly carbon auction of the Regional Greenhouse Gas Initiative, or RGGI, the nation’s first market-based program to cut power sector emissions, sold all of the nearly 23.5 million permits offered for sale at a price of $7.60 per allowance, according to the auction results released on March 5. This is the first auction…...

Visual Primer: Renewable Natural Gas Emerging as Utility Decarbonization Strategy

U.S. state regulators and utilities alike are exploring the use of renewable natural gas (RNG) due to its environmental benefits to displace fossil fuels and to support the transition to a low-carbon energy economy. RNG is pipeline-quality methane produced from biomass that is sourced from livestock operations, landfills, and other organic waste.

President Biden Takes Action to Rejoin Paris Climate Accord, Review Environmental Rollbacks

U.S. President Joe Biden issued a series of executive actions on Jan. 20 reflecting his energy agenda that prioritizes clean energy and climate action. Biden took action to recommit the U.S. to the Paris Climate Agreement and issued an executive order revoking a key permit for the Keystone XL oil pipeline and temporarily halting oil…...

Visual Primer: Northeastern Regional Carbon Market Gets A Boost With New Members

The Regional Greenhouse Gas Initiative (RGGI), which established the nation's first mandatory emissions-trading program, received a further boost as Virginia finalized regulations to become its eleventh member and Pennsylvania, the third largest coal-producing state, adopted draft regulations to join the program, following New Jersey’s re-entry after a decade.

EnerKnol Carbon Policy Tracking Table

Measures to tackle greenhouse gas emissions have long been a political lightning rod, but mechanisms like carbon pricing are coming up more regularly in legislative sessions and evolving to play a key role in the shift to a low-carbon economy. Keep on top of the latest carbon policy changes by accessing EnerKnol’s Quarterly Carbon Policy…...

California’s Twenty-Fifth Carbon Auction Generates $590 Million

The twenty-fifth quarterly carbon auction held by California and Quebec sold all of the nearly 56.4 million carbon permits offered for current emissions at a price of $16.93 per allowance, above the floor price of $ 16.68, according to the results released on Nov. 24 by the California Air Resources Board. The auction also sold…...

Pennsylvania Governor Vetoes Bill That Would Have Stalled Efforts to Join RGGI

Pennsylvania Governor Tom Wolf, a Democrat, vetoed legislation, which would have prevented the state from implementing measures to limit carbon emissions without legislative approval. The state’s Environmental Quality Board recently voted in favor of a proposed regulation that would allow the state to participate in the Regional Greenhouse Gas Initiative, or RGGI, a cooperative effort…...

Pennsylvania Board Approves Draft Regulation to Participate in Regional Carbon Market

The Pennsylvania Environmental Quality Board on Sept. 15 voted in favor of a proposed regulation that would allow the state to participate in the Regional Greenhouse Gas Initiative, or RGGI, a cooperative effort among 10 states to cap and reduce emissions from the power sector. Democratic Governor Tom Wolf applauded the move, which stems from…...

Pennsylvania Lawmakers Pass Bill Requiring Legislative Approval to Join Regional Carbon Market

The Pennsylvania Senate on Sept. 9 voted in favor of a bill that would require legislative approval before the state can impose a carbon tax or join a multi-state carbon-trading program. The House of Representatives approved the legislation in July. The move comes ahead of a Sept. 15 meeting of the state’s Environmental Quality Board…

RGGI Carbon Auction Sells Out, Allowance Prices Hit Five-Year High

The 49th quarterly carbon auction of the Regional Greenhouse Gas Initiative, the nation’s first market-based program to cut power sector emissions, sold nearly 16.2 million carbon allowances at a clearing price of $6.82, according to a Sept. 4 news release. The clearing price is the highest since the December 2015 auction, which cleared at $7.50.…