Regional Greenhouse Gas Initiative 

(RGGI): Overview and Outlook

June 3, 2021

Ben Grumbles 

Secretary, Maryland Department of the Environment

www.rggi.org 1
The RGGI States

www.rggi.org 2

NY

VT

NH

ME

MA

RI

CT

MD DE

PA

NJ

VA

RGGI-11

• 18 percent of US 

population 

• 21 percent of US 

economy

• 4th largest economy in 

the world based on 

nominal GDP (4.3T) 
RGGI Structure

• Eastern states cap-and-invest program

o Power sector

o Fossil generators 25+ MW

o State-issued allowances

 Auction distribution 

 Fungible, bankable, and tradable

• 2021 cap: 119.8 million tons

• Adjusted cap: 100.7 million tons

• Auction proceeds reinvested

www.rggi.org 3
Track Record: CO2 Reduction

www.rggi.org 4

CO2 Emissions (short tons)

RGGI-10: CO2 Emissions vs. Regional GDP

Regional GDP (current $)

CO2 Emissions (short tons)

RGGI-10: CO2 Emissions vs. Regional GDP

Regional GDP (current $)

CO2 Emissions (short tons)

RGGI-10: CO2 Emissions vs. Regional GDP

Regional GDP (current $)

CO2 Emissions (short tons)

RGGI-10: CO2 Emissions vs. Regional GDP
www.rggi.org 5

Track Record: Generation

0

50,000,000

100,000,000

150,000,000

200,000,000

250,000,000

300,000,000

350,000,000

400,000,000

450,000,000

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Generation (MWh)

RGGI-10 Generation Trends: 2006-2019

Petroleum Coal Gas Nuclear Hydro Renewables (excl. hydro) Other
RGGI Program Review

Regular, comprehensive program review

• Explore new or revised program design elements

• Evaluate the regional cap 

• Open RGGI to public engagement 

Improvements announced in 2017 include:

• 30% decline in the RGGI cap through 2030

• Emissions Containment Reserve

• Revision of Cost Containment Reserve

• Third cap adjustment for banked allowances

www.rggi.org 6
RGGI Market 

Quarterly auctions

• 90% of allowances

• $1.86 to $7.60

• > $3.9 billion in proceeds

• Centralized platform tracks allowances (RGGI COATS)

Robust secondary market 

• Closely tracks auction prices 

• Provides liquidity

www.rggi.org 7
RGGI Auction Structure 

8

Platform:

Electronic 

Internet-based

Format: 

Uniform-price

Sealed-bid 

Oversight:

Independent market 

monitor

Awards: 

Bids ranked by price 

High to low

Auction 

Structure
RGGI Auctions

www.rggi.org 9

Regional quarterly CO2 allowance auctions

Reserve price creates floor 

Mechanisms to enhance market stability

• Cost Containment Reserve: Additional allowances made 

available if interim clearing price is above trigger price

• Emissions Containment Reserve: Allowances withheld if 

interim clearing price is below trigger price
Auction Clearing Prices
Independent Market Monitor

11

Monitors auctions 

live

Tracks secondary 

market

Annual & quarterly 

reports published 

on RGGI website

Maintains market 

integrity

Market 

Monitor
RGGI CO2 Allowance Tracking 

System (COATS)

12

Tracking of CO2

emissions

Origination & 

transfer of CO2

allowances 

Public reports of 

program data & 

market activity

Processing of 

compliance

RGGI 

COATS
 

38%

19%

20%

16%

5% 0.9%

 

 

 

 

 

 

 

 

 

 

 

 

 

24%

13%

23%

14%

5%

6%

7% 5% 0.9%

 

RGGI Reinvestment

www.rggi.org 13

2018 Investments: $248M

Investment Program Categories Investment Recipients 
Thank you!

www.rggi.org 14