RGGI

The Regional Greenhouse Gas Initiative (RGGI) is a multi-state, market-based program designed to cap and reduce carbon dioxide emissions from fossil fuel power plants.  Collectively, the RGGI-participating states establish an annual regional limit (cap) on carbon dioxide emissions from their combined electric power sector. The fossil fuel power plants in each state participate in auctions to buy allowances for their annual carbon dioxide emissions.

Funds from the RGGI auction are invested in energy efficiency, renewable energy, direct energy bill assistance and other greenhouse gas reduction strategies to advance the clean energy economy and create local green jobs.

 The New Jersey Department of Environmental Protection (DEP), the New Jersey Board of Public Utilities (BPU), and New Jersey Economic Development Authority (EDA) released the Regional Greenhouse Gas Initiative Strategic Funding Plan for 2026 through 2028 on January 7, 2026. This is the third Strategic Funding Plan  for NJ and identifies nine initiatives in which the agencies will invest the RGGI auction proceeds during that period.

The initiatives are:

1. 1. Catalyze clean, equitable transportation.

   2. Accelerate building decarbonization.

   3. Promote blue carbon in coastal habitats.

   4. Strengthen New Jersey’s forests.

   5. Sustain and grow the New Jersey Green Bank.

   6. Supplement ratepayer relief.

   7. Expand clean energy generation, transmission, storage, and grid resilience.

   8. Mobilize clean manufacturing and industry.

   9. Enhance the clean energy supply chain, workforce, and technology development.

These initiatives will further New Jersey’s clean energy and climate mitigation goals.

To learn more about how the agencies develop this plan and how they plan to implement it, visit RGGI.