New Jersey (US) will return to the Regional Greenhouse Gas Initiative

The New Jersey Department of Environmental Protection (DEP) has adopted two rules returning New Jersey to the Regional Greenhouse Gas Initiative (RGGI). The Carbon Dioxide Budget Trading rule sets the mechanisms for rejoining RGGI and the initial CO₂ cap for the state’s power sector at 18 MtCO₂ in 2020. This CO₂ budget will decrease by 30% through 2030: this measure, combined with ambitious renewable energy goals (50% renewable share and 3.5 GW wind target by 2030), should help New Jersey to reduce its greenhouse gas (GHG) emissions to 11.3 MtCO₂eq by 2030. In addition, the Global Warming Solutions Fund rule establishes the framework for spending proceeds from RGGI CO₂ allowance auctions.

Created in 2009, the RGGI is a cap-and-trade mandatory market-based program set up by nine Northeastern and mid-Atlantic American states designed to reduce greenhouse gas emissions and carbon output associated with power plants. The nine RGGI states are namely: Connecticut, Delaware, Maine, Maryland, Massachusetts, New Hampshire, New York, Rhode Island, and Vermont. In addition, the New England and Mid-Atlantic states are participating in the fourth RGGI control period. New Jersey (9 million inhabitants) withdrew from RGGI in 2012 but the state administration now considers that reentering the scheme will help the state reach its 100% clean energy target by 2050. RGGI member states will vote on New Jersey's rules and participation in the coming months: New Jersey could reenter the initiative as of 1 January 2020, to take part to the March 2020 auction.