Through the green initiatives, 9 U.S. Northeast States are reducing their carbon footprint and creating thousands of jobs in the clean energy market.
As per the results of a study that was released on Tuesday, thousands of jobs have been created in the clean energy market as a result of 9 U.S. Northeastern states slashing greenhouse gas pollutions. As a result of these green initiatives, the cost of power for consumers have also come down and are based on a market-based scheme.
The report on the Regional Greenhouse Gas Initiative by the Analysis Group, a Boston-based consultancy firm, comes in the wake of the Trump administration wanting to cut back federal funding for climate change, which the Analysis Group said would kill jobs and stifle growth.
As per the study, the RGGI, a cap-and-trade scheme which came into existence in 2009, has generated $1.4 billion in net economic benefits for the nine members since 2015; further it has also generated more than 14,500 job-year in the renewable energy and efficiency sectors.
A job-year is the equivalent of a full-time job for a year.
“All of the states have benefited from an actual reduction in carbon emissions,” said Sue Tierney, a senior adviser with Analysis Group, in an interview. “From a monetary and economic point of view … consumers are a bit better off.”
Last year, a report by the Congressional Research Service stated the impact of the RGGI program was “arguably negligible” since the region is responsible for only 7% of total U.S. greenhouse gas emissions.
The RGGI system is meant as a model for other states and countries to replicate and follow; it seeks to encourage carbon cuts by requiring industries, including power plants, to acquire tradable permits to cover their emissions.
Since every year, fewer permits are made available by the states, it thus creates an incentive for businesses to reduce their carbon footprint.
Revenues from the permit sales has generated $2.8 billion since 2009.
As per the report, these revenues go to member states, which then invest in programs that support renewable energy, energy efficiency and jobs creation and training.
The RGGI states includes Massachusetts, Connecticut, Maine, Delaware, New Hampshire, Maryland, New York, Vermont and Rhode Island. Original member New Jersey, had withdrawn in 2011 is now seeking to rejoin the group.
The Analysis Group’s report was funded mainly by progressive and environmentalist foundations including the Barr Foundation, the Energy Foundation and the Merck Family Fund.