The Regional Greenhouse Gas Initiative (RGGI) yesterday certified regulations by the state of Virginia to participate in the regional carbon trading program. As a result, RGGI will welcome the state as its eleventh participating member starting January 01, 2021.

Virginia enters RGGI with a base budget for 2021 of 27.16 million tons of CO2. The cap ratchets down to 19.6 million tons by 2030. Upon entry in the program next year, Virginia’s carbon emissions cap will the second largest among RGGI states, after New York. The state's regulations closely followed the revised RGGI Model Rule, including provisions for allowance allocation and participation in the quarterly auctions.

With the addition of the mid-Atlantic state of Virginia, RGGI continues the expansion that began last year when New Jersey re-entered the program after a hiatus of several years. The state of Pennsylvania is also considering participating in the RGGI program, and the regulatory process kicked off in Feb (See our post for more information.)

For more information on the RGGI carbon trading program, see our Carbon Desk's most recent RGGI market report, or contact them directly at: +1 914.323.0265 or uscarbon@evomarkets.com.