Report provides guidance to state policymakers on how to reduce emissions leakage.


The Regional Greenhouse Gas Initiative (RGGI), a regional carbon cap-and-trade program, is a successful and essential tool for reducing greenhouse gas emissions in the Northeast and Mid-Atlantic United States and providing associated environmental, economic, and health benefits. Emissions leakage is a looming threat to the ongoing success of this important innovative market arrangement. "Leakage” happens when polluters try to evade pollution reduction requirements by importing dirty electricity, made without adequate environmental controls, from outside the RGGI region. A new report from the Pace Energy and Climate Center, called “Emissions Leakage in RGGI: An Analysis of the Current State and Recommendations for a Path Forward,” discusses this looming threat and provides recommendations for policymakers on reducing leakage risk. Those recommendations include expansion of energy efficiency efforts, extension of RGGI coverage to fossil-fuel power plants with a capacity of under 25MW, improved methods for tracking emissions associated with imported electricity and extension of the cap to cover those emissions, and linking RGGI with additional states.