New York state authorities have proposed changes to climate regulations that would tighten limits on carbon allowances issued to the power sector under the Regional Greenhouse Gas Initiative (RGGI), as part of efforts to accelerate emissions reductions while maintaining energy affordability.
The New York State Department of Environmental Conservation (DEC) and the New York State Energy Research and Development Authority (NYSERDA) said the proposed amendments would cut the annual budget of carbon dioxide allowances through 2037. The changes include reducing allowances allocated for long-term contracts and voluntary renewable energy purchases, while removing the option for offset projects.
According to the agencies, the revised framework would lower the regional emissions cap to around 69.8 million tonnes of CO₂ in 2027, followed by an 89% decline relative to the 2024 cap by 2037. NYSERDA said this would translate into annual emissions reductions of about 10% through 2033, tapering to 3% per year until 2037.
The proposals would also eliminate references to CO₂ offset projects, which previously included landfill methane capture and avoided agricultural methane initiatives.
DEC and NYSERDA said the amendments are intended to deliver “affordable and effective reductions in pollutants”, while ensuring sufficient allowances remain available to meet expected demand.
RGGI is a cooperative cap-and-trade programme involving Connecticut, Delaware, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, Rhode Island and Vermont. New York’s move to strengthen its RGGI rules follows Pennsylvania’s decision to exit the programme last month as part of a state budget agreement.
The agencies framed the proposal against a backdrop of federal policy challenges to renewable energy deployment. “In a time when New York and other states are facing federal headwinds, these proposed updates demonstrate a collective solidarity among states,” said NYSERDA chief executive Doreen Harris.
