Thursday, 30th April 2026

Regional Greenhouse Gas Initiative.Co

The RGGI participating states announced that Virginia Rejoins RGGI following approval by Governor Spanberger of the state’s regulation reinstating its CO₂ budget trading program. With this decision, Virginia returns as a participating state, and its compliance obligations will resume effective July 1, 2026. Virginia’s allowance budget for the second half of 2026 will total 11.48 million allowances. The state will participate in the September 9 and December 2, 2026 RGGI auctions, adding its allowance offerings to those of the other ten participating states. In addition, Virginia will originate 1.148 million Cost Containment Reserve (CCR) allowances for the remainder of 2026. Later this year, Virginia will initiate regulatory action to align its program with the outcomes of the Third Program Review and the updated Model Rule, with full alignment targeted by January 1, 2027. The Regional Greenhouse Gas Initiative (RGGI) is the first mandatory market-based regulatory program in the United States designed to reduce greenhouse gas emissions from the power sector. Participating Eastern states implement individual CO₂ budget trading programs under their respective legal authorities. Under the RGGI framework, a CO₂ allowance represents authorization to emit one short ton of carbon dioxide. Regulated power plants must surrender allowances equal to their verified emissions for each three-year control period. RGGI is currently in its sixth control period, which began on January 1, 2024 and runs through December 31, 2026. Virginia’s reinstatement restores its role within this multi-state compliance market and expands allowance supply for the remainder of the current control period.