Several US states are tightening emissions caps and expanding carbon markets as federal climate regulation shifts. Virginia is rejoining the Regional Greenhouse Gas Initiative (RGGI), causing significant price volatility in allowance auctions, while California updates its cap-and-trade rules to align with 2045 climate goals. These developments face headwinds from industry concerns over energy affordability and potential legal challenges from the federal government. The balance between aggressive decarbonization targets and industrial competitiveness remains a primary point of tension for policymakers in New York and California.
