Economy-wide prices on greenhouse gas emissions, including cap-and-trade programs and carbon taxes, are some of the most effective, low-cost options to reduce emissions. Non-federal actors can integrate regional, market-based policies to reduce emissions – allowing for trading between entities to help identify the least-cost mitigation opportunities and incentivize cities, states, and businesses to implement aggressive CO2 emission reduction plans.
Economy-Wide Carbon Pricing
State coalition for carbon pricing
As we work to develop economically sound solutions to climate change, states can work together to establish legally enforceable economy-wide limits on carbon pollution and align their targets with the objectives of the Paris Agreement. These coalitions, like the Regional Greenhouse Gas Initiative, can provide learnings and models for future planning as states step up their climate leadership.
Case Study
Virginia Develops Trading-Ready Regulation to Achieve Compliance With Regional Greenhouse Gas Initiative
Before leaving office, former Virginia Governor Terry McAuliffe deployed air pollution controls and requested the development of a “trading-ready” regulation to limit carbon pollution from the power sector. As the newly elected Governor Northam takes up the mantle of Virginia’s climate action, he is working to ensure that the new regulation makes the state compliant with the RGGI by 2020.
