Write short notes on The Regional Greenhouse Gas Initiative (RGGI)

What will be an ideal response?

RGGI was formed in 2005 by 10 northeastern U.S. states to operate a cap-and-trade system for reducing greenhouse gases emissions. RGGI began operating in 2008, and auctioned 86 percent of the allowances generating $790 million through 2010. Most of the funds generated in the auctions were used by the states to fund energy efficiency programs and renewable power, as well as providing subsidies for low-income ratepayers. RGGI was supported by companies that benefited from the funds generated by the auctions, but other companies argued that it drove up costs and drove jobs away. The price of allowances had been set very low, and the recession reduced emissions below the RGGI cap, resulting in a price of allowances at the minimum allowed of $1.89 a ton of emissions. In addition the price of natural gas fell, and power companies burned gas instead of oil or coal, reducing emissions. RGGI had accomplished little in the way of emissions reductions. The failure of RGGI to affect environmental goals led states to consider withdrawing from the initiative.