Virginia has officially rejoined the Regional Greenhouse Gas Initiative (RGGI), the cap-and-trade program for power plant emissions in the northeastern and mid-Atlantic states. The move restores a key carbon pricing mechanism in the state after a period of withdrawal, and it will require power plants to buy allowances for their CO2 output. Proceeds from the auction of those allowances are expected to fund energy efficiency programs and flood resilience projects in Virginia. For anyone tracking carbon markets, this is a notable signal. RGGI has been one of the more stable carbon pricing programs in the U.S., and Virginia's return adds a significant emitter back into the cap. The article from WHRO covers the political back and forth that led to the reentry and what it means for ratepayers and the state budget. It is worth reading for the details on how the auction revenue will be allocated and what the cap trajectory looks like going forward.
