Global Warming News

Trenton – Beginning today, New Jersey power plants will be required to pay for every ton of carbon dioxide (CO₂) emitted into the air.   Under the Regional Greenhouse Gas Initiative (RGGI), New Jersey and nine other Northeast states have agreed to cap power plant emissions of CO₂ – the pollutant most responsible for global warming – and require power plants to pay for their emissions and use the proceeds to finance the transition to a clean energy economy. 

“If left unchecked, global warming will impact countless aspects of our economy and way of life,” said Matt Elliott, Global Warming and Clean Energy Advocate at Environment New Jersey.  “Today, New Jersey makes a strong statement by holding power plants accountable for their pollution that causes global warming.”

Given the imminent threats posed by global warming and the Bush administration’s failure to address the problem, 10 Northeast states together set out to create the nation’s first-ever multi-state cap.  RGGI states will cap CO₂ emissions at current levels, then retire 2.5% of all allowances each year between 2015 and 2018 until emissions are reduced 10%.  In addition, power plants will be required to pay for each ton of CO₂ emitted, leveling the playing field for cleaner energy sources.

“This is an important first step in the right direction,” said Jeff Tittel of the NJ Sierra Club.  “As we consider national solutions to solving global warming, this sets the precedent that capping emissions and auctioning pollution permits is proven and effective.”

President-Elect Barack Obama has indicated strong support for a similar cap onCO₂ nation-wide.  Environmental groups caution that, while RGGI sets a precedent for reducing emissions through capping emissions and auctioning permits, any national program must be much stronger and based on the global warming pollution reductions that scientists say are necessary to avoid the worst impacts of global warming.

“To solve global warming and transition to a clean energy future, a national cap and trade program must reduce greenhouse gas emissions by at least 80% by 2050,” said the NJ Environmental Federation's David Pringle. “Anything less makes us vulnerable to a myriad of negative environmental and economic impacts. Today's auction making polluters pay and strong implementation of the Energy Master Plan and Global Warming Response Act Recommendations Report, released just yesterday, will ensure New Jersey does its part.” 

In today’s auction, over 31.5 million allowances will be available to power plants.  In total, the sale of these allowances is projected to generate over $100 million in revenue.  Each state is expected to reinvest that revenue in energy efficiency and clean energy projects that will benefit society and further reduce greenhouse gas emissions.

“RGGI is a win-win for the environment and the economy,” said Elliott.  “With this program, we cut power plant pollution and generate revenue that will grow the clean energy market, create new ‘green-collar’ jobs, and further curb out global warming pollution.”

In New Jersey, there is still some question as to how, exactly, the auction revenue will be spent.  Various state agencies, including the Department of Environmental Protection and the Economic Development Authority, are developing guidelines for what types of projects will be funded. 

“Investing in energy efficiency is the cheapest and fastest way to further curb global warming pollution and cut energy costs for all New Jersey residents,” said Elliott.  “Governor Corzine’s Energy Master Plan calls for efficiency upgrades to nearly every building in the state.  He should direct his agencies to use RGGI money to advance this admirable goal.”

Today marks the second auction conducted under RGGI.  Six states participated in the first auction at which over 12.5 million allowances were sold, generating over $38 million for clean energy projects in those states.  As of today, all 10 states will be fully participating in the RGGI program.

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Environment New Jersey is a non-profit environmental organization representing over 20,000 citizen members across the state.  For more information, visit www.environmentnewjersey.org.

NJ Environmental Federation has been empowering people for more than 36 years to

take action to protect America’s waters, the health of our families and to make democracy work. For more information, visit www.cleanwateraction.org/njef.

The Sierra Club is a national, member-supported environmental organization, which seeks to influence public policy in both Washington and the state capitals through public education and grass-roots political action. For more information, visit http://newjersey.sierraclub.org/.

For more information on RGGI, visit www.rggi.org.