Governor Andrew Cuomo of New York State announced on Thursday that the state is initiating discussions with neighbouring states, as well as California, Quebec, and Ontario, to explore the establishment of a carbon trading market that would span across North America.
The plan involves combining the Regional Greenhouse Gas Initiative (RGGI), which is currently implemented by nine Northeastern states, with the existing market framework used by California and the two Canadian provinces. Governor Cuomo, speaking at Columbia University in New York City, emphasized that New York aims to engage other states and provinces in this collaborative effort.
The primary objective is to create a comprehensive North American market that collectively reduces emissions. Governor Cuomo expressed his hope that this proposal will spark broader conversations about carbon trading in every state across the nation.
Both the RGGI and the California-Quebec-Ontario markets set limits on total pollution and require large-scale emitters, such as factories, to buy and sell permits for each ton of greenhouse gas they release. This approach provides a financial incentive for polluters to seek the most cost-effective methods of reducing emissions.
Previous attempts to pass legislation for a national pollution market, commonly known as cap-and-trade, failed in the U.S. Congress back in 2010. However, this new initiative by New York State presents a regional approach to carbon trading, aiming to drive collaboration and emission reduction efforts across North America.
