PJM Interconnection LLC on Jan. 24 filed a new schedule for its capacity market auctions and associated pre-auction deadlines with the Federal Energy Regulatory Commission, proposing to hold the auction for 2023/2024 delivery year on June 8. The proposal is in response to a December 2021 order directing the grid operator, which operates across 13…...
Virginia Governor Glenn Youngkin on Jan. 15 issued an executive order to reexamine the state’s participation in the Regional Greenhouse Gas Initiative, or RGGI, the nation’s first mandatory cap-and-trade program to cut power sector emissions. The order notes that Virginia’s participation in RGGI risks contributing to the increased cost of electricity. Virginia became an official…...
Interest in carbon pricing mechanisms has deepened as lawmakers and regulators explore policy tools to address emissions reductions in order to reach ambitious clean energy and climate goals. Cap-and-trade is figuring more prominently as an efficient market-based means to achieve significant carbon reductions and create an incentive to invest in non-emitting technologies.
Oregon has embarked on a clean energy transition with the enactment of sweeping legislation that mandates carbon-free power by 2040, setting one of the most ambitious decarbonization timelines in the nation. The state’s carbon reduction efforts range from legislative measures to study renewable hydrogen and expand transportation electrification, to rulemaking for a climate protection plan, and investigation into resource adequacy.
Emission trading is coming to prominence as a key market-based tool in state efforts to reduce greenhouse gases, including decarbonization of the electricity sector. Among recent actions Washington has enacted legislation to implement an economy-wide cap-and-invest system, becoming the second state to have a comprehensive carbon-pricing program, and Pennsylvania has adopted rulemaking for a carbon trading program covering the power sector.
The 52nd quarterly carbon auction of the Regional Greenhouse Gas Initiative, or RGGI, the nation’s first market-based emissions regulation program, sold all of the nearly 23 million CO2 allowances offered. Permits were sold at a clearing price of $7.97, the highest price to date and a 4.87 percent increase from the previous auction held in…...
The Washington legislature on April 24 passed legislation aimed to reduce greenhouse gas emissions by implementing an economy-wide cap-and-invest system. Upon enactment, Washington will become the second state – next to California – to have a comprehensive carbon-pricing program. The state would auction carbon allowances starting in 2023, aligned with the 2030, 2040, and 2050…...
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.
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…...
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…...