Regional Greenhouse Gas Initiative

Delaware is a participant in a multi-state carbon dioxide (CO₂) cap-and-trade program developed as a cooperative effort among the states of Connecticut, Delaware, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, Rhode Island, Vermont and Virginia to cap and reduce CO₂ emissions from the power sector.

Carbon dioxide is a greenhouse gas (GHG) that contributes to global warming. This effort is known as the Regional Greenhouse Gas Initiative (RGGI).

For more information, please contact Yagna Shah at Yagna.Shah@delaware.gov or 302-739-9402.

CO₂ Budget Trading

Delaware’s portion of the RGGI program is established in Delaware regulations as the CO₂ Budget Trading Program (7 DE Admin. Code 1147), which is designed to initially stabilize and then reduce CO₂ emissions in an economically efficient manner. Delaware and other participating states have developed the emission budget trading programs based on a model rule developed by the RGGI participating states since 2009 to reduce CO₂ emissions from fossil-fuel fired power plants.

Money raised through the initiative is returned to participating states to invest in energy efficiency, renewable energy and other consumer benefit programs. These programs are spurring innovation in the clean energy economy and creating green jobs in the participating RGGI states.

In 2024, $856 million in RGGI proceeds were invested in programs including energy efficiency, clean and renewable energy, greenhouse gas abatement and direct bill assistance. Over their lifetime, these 2024 investments are projected to provide participating households and businesses with $2.6 billion in energy bill savings and avoid the emissions of 4.4 million short tons of CO₂.

RGGI Program Review

The RGGI participating states are committed to comprehensive, periodic review of their CO₂ budget trading programs, to consider successes, impacts, and design elements (Program Review). The RGGI participating states completed the First Program Review in February 2013 and completed the Second Program Review in December 2017.

The RGGI participating states began the Third Program Review in the Fall of 2021 and completed it in July 2025, resulting in the 2025 Model Rule and announced changes to RGGI design which will be effective beginning January 1, 2027. The RGGI participating states have agreed to strengthen their regional CO₂ emissions cap through 2037, starting in 2027, and establish new mechanisms to protect energy affordability. These updates will ensure the longstanding bipartisan initiative’s continued success in promoting clean air, health and economic benefits across the region.

RGGI participating states also agreed to launch their next Program Review no later than 2028, as part of their commitment to regularly evaluate their CO₂ budget trading programs. The next Program Review will consider factors such as changes in energy policy, the pace and scale of electricity load growth, progress in clean energy deployment and ongoing efforts to ensure energy affordability.

Public participation is a key component of a successful Program Review. The RGGI participating states conducted public engagement throughout the Third Program Review, including periodic public meetings and accompanying open comment periods, to share updates and solicit public feedback.

All meeting recordings so far are available on the RGGI Program Review website.

Delaware CO₂ Budget Trading Program – Regional Auction

To support the state CO₂ Budget Trading Program, the RGGI participating states have implemented a regional auction platform to sell CO₂ allowances. The allocation format will be conducted as a sealed bid, uniform price auction. For more information, please refer to the RGGI Auction Materials page, which is updated before each auction.

Delaware CO₂ Allowance Submission Schedule for 2026 Regional CO₂ Allowance Auctions

Projected Auction Dates	Reserve Price	Allocation Year	Projected Quantity	Cost Containment Reserve	Emissions Containment Reserve*
March 11	$2.69	2026	717,673	287,069	287,069
June 3	$2.69	2026	717,673	Remainder of 287,069	Remainder of 287,069
September 9	$2.69	2026	717,672	Remainder of 287,069	Remainder of 287,069
December 2	$2.69	2026	717,672	Remainder of 287,069	Remainder of 287,069
Total 2026 Allowances			2,870,690
*This column represents the maximum number of allowances that may be withheld from auctions in 2026, if certain conditions are met. Please refer to 7 DE Admin. Code 1147

Greenhouse Gas Inventory

The Greenhouse Gas Inventory reports present data and analyses on the following greenhouse gases: carbon dioxide (CO₂), methane (CH₄), nitrous oxide (N₂O), hydrofluorocarbons (HFCs), perfluorocarbons (PFCs), sulfur hexafluoride (SF₆), and nitrogen trifluoride (NF₃).

The DNREC Division of Air Quality prepares the inventory to characterize Delaware’s historical and projected greenhouse gas emissions and thereby inform the policy option development process.

The reports provide information on the activities that caused emissions and removals, as well as background information on the methods used to estimate the emissions.

The GHG inventory has four key objectives: