Regional Initiatives

Map of North American Cap-and-Trade Initiatives  

Regional initiatives can be more efficient than programs at the state level, as they encompass a broader geographic area, eliminate duplication of work, and create more uniform regulatory environments. Over the past few years, a number of regional initiatives have begun developing systems to reduce carbon dioxide emissions from power plants, increase renewable energy generation, track renewable energy credits, and research and establish baselines for carbon sequestration. 

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Midwest Greenhouse Gas Reduction Accord

Energy Security and Climate Change Stewardship Platform for the Midwest

Western Climate Initiative

Regional Greenhouse Gas Initiative

Midwest Greenhouse Gas Reduction Accord

On November 15, 2007, six states and one Canadian province established the Midwest Greenhouse Gas Reduction Accord (MGGRA). Under the Accord, members agree to establish regional greenhouse gas reduction targets, including a long-term target of 60 to 80 percent below current emissions levels, and develop a multi-sector cap-and-trade system to help meet the targets. Participants will also establish a greenhouse gas emissions reductions tracking system and implement other policies, such as low-carbon fuel standards, to aid in reducing emissions. The Governors of Illinois, Iowa, Kansas, Michigan, Minnesota, and Wisconsin, as well as the Premier of the Canadian Province of Manitoba, signed the Accord as full participants; the Governors of Indiana, Ohio, and South Dakota joined the agreement as observers to participate in the development of the cap and trade system. The Accord represents the third regional agreement among U.S. states to collectively reduce greenhouse gas emissions, and will be fully implemented within 30 months.

More information on Midwest Greenhouse Gas Reduction Accord

Press Release

Midwest Greenhouse Gas Accord

Pew Center Statement

Energy Security and Climate Stewardship Platform for the Midwest*

In November 2007, the Governors of 11 midwestern states and the Premier of one Canadian province individually adopted all or portions of an Energy Security and Climate Stewardship Platform. The state of Missouri later adopted portions of the agreement as well.

The Platform lists goals for energy efficiency improvements, low-carbon transportation fuel availability, renewable electricity production, and carbon capture and storage development. In addition to goals related to energy efficiency, renewable energy sources, and biofuel production, the Platform lays out objectives with respect to carbon capture and storage. Members agree to have in place a regional regulatory framework for CCS by 2010, and by 2012, to have sited and permitted a multi-jurisdiction CO2 transport pipeline and have in operation at least one commercial-scale coal-powered IGCC power plant with CCS, with additional plants to follow in succeeding years. By 2020, all new coal plants in the region will capture and store CO2 emissions. Numerous policy options are described for states to consider as they work towards these goals.

The Platform also lays out a six cooperative regional agreements. These resolutions establish a Carbon Management Infrastructure Partnership, a Midwestern Biobased Product Procurement System, coordination across the region for biofuels development, and a working group to pursue a collaborative, multi-jurisdictional transmission initiative. States adopting all or part of the Platform include Wisconsin, Minnesota, South Dakota, Illinois, Indiana, Iowa, Kansas, Michigan, Missouri, Nebraska, North Dakota, and Ohio, as well as the Canadian Province of Manitoba.

Press Release

Energy Security and Climate Stewardship Platform for the Midwest

Western Climate Initiative

On February 26, 2007, Governors Napolitano of Arizona, Schwarzenegger of California, Richardson of New Mexico, Kulongoski of Oregon, and Gregoire of Washington signed an agreement establishing the Western Climate Initiative (WCI), a joint effort to reduce greenhouse gas (GHG) emissions and address climate change. Since that time, the governors of Utah and Montana, as well as the premiers of British Columbia, Manitoba, Ontario, and Quebec (not shown above) have joined. An additional 14 jurisdictions participate as observers, including the U.S. states of Alaska, Colorado, Idaho, Kansas, Nevada, and Wyoming; the Canadian provinces of Nova Scotia and Saskatchewan; and the Mexican border states of Baja California, Chihuahua, Coahuila, Nuevo Leon, Sonora, and Tamaulipas.

In the Initiative's Memorandum of Understanding, WCI members agreed to jointly set a regional emissions target and establish a market-based system—such as a cap-and-trade program covering multiple economic sectors—to aid in meeting this target. In August 2007, the Western Climate Initiative announced its regional, economy-wide greenhouse gas emissions target of 15 percent below 2005 levels by 2020, or approximately 33 percent below business-as-usual levels. The regional target is designed to be consistent with existing targets set by individual member states and does not replace these goals. Covered emissions include the six primary greenhouse gases identified by the United Nations Framework Convention on Climate Change: carbon dioxide, methane, nitrous oxide, hydrofluorocarbons, perfluorocarbons, and sulfur hexafluoride. In September 2008, the WCI released Design Recommendations for a cap-and-trade program; beginning in 2012, the program will cover emissions from electricity and large industrial and commercial sources, and it will cover emissions from transportation and other residential, commercial, and industrial fuel use beginning in 2015.

The WCI builds on work already undertaken individually by the participating states and provinces, as well as two earlier regional agreements: the Southwest Climate Change Initiative of 2006, which includes Arizona and New Mexico, and the West Coast Governors' Global Warming Initiative of 2003, which includes California, Oregon, and Washington.

More information on WCI

Press Release

Western Climate Initiative Statement of Regional Goal

Western Climate Initiative Website

Regional Greenhouse Gas Initiative (RGGI)

On December 20, 2005, the governors of seven Northeastern states announced the creation of the Regional Greenhouse Gas Initiative (RGGI). The governors of Connecticut, Delaware, Maine, New Hampshire, New Jersey, New York, and Vermont signed a Memorandum of Understanding agreeing to implement the first mandatory U.S. cap-and-trade program for carbon dioxide. RGGI sets a cap on emissions of carbon dioxide from power plants, and allows sources to trade emissions allowances. The program will begin by capping emissions at current levels in 2009, and then reducing emissions 10% by 2019. Pennsylvania and the District of Columbia are observers in the RGGI process.

On January 18, 2007, Massachusetts Governor Deval Patrick signed a Memorandum of Understanding committing his state to join RGGI, making Massachusetts the eighth state to participate. In his State of the State address on January 30, Governor Donald Carcieri announced that Rhode Island would also be joining RGGI.

On April 6, 2006, Maryland Governor Robert L. Ehrlich Jr. signed into law the Healthy Air Act. The bill required the Governor to include the state in RGGI by June 30, 2007. Maryland became the 10th official participating state in April 2007 with Governor Martin O'Malley's signing of the RGGI Memorandum of Understanding.

More information on RGGI

Visit the RGGI site for more information