State profits from cutting emissions

Despite President Donald Trump’s resistance to climate control measures, Connecticut and nine other regional states are reaping huge economic rewards from cutting carbon emissions.

A new report on the nation’s first Regional Greenhouse Gas Initiative shows participating states realized $1.4 billion in economic value between 2015 and 2017, and the RGGI created more than 14,500 new jobs.

Connecticut gained $78.3 million in proceeds, including $41.7 million for energy efficiency projects, $25.4 million for renewable energy investments and $7 million for the state’s General Fund, a report by the Analysis Group concluded.

“For years, many on the right, including many in the Trump Administration, have peddled a false choice between protecting our environment for future generations and growing our economy,” said Gov. Dannel P. Malloy.

“As this report proves, promoting clean energy both benefits the environment and creates good jobs,” Malloy said. “We must commit to ensuring RGGI remains strong now and in the future.”

Nearly a decade ago, Connecticut and nine other states — Delaware, Maine, Maryland, Massachusetts, New Hampshire, New York, New Jersey, Rhode Island, and Vermont — formed the RGGI and set carbon reduction goals.

The compact allows energy producers to bid against each other for the right to emit carbon and the proceeds help pay for renewable energy projects that reduce emissions.

“RGGI was not designed to be an economic development program,” said Susan Tierney, a senior advisor with Analysis Group.

“It was designed to cut greenhouse gas emissions, which it is doing successfully,” Tierney said. “The data continue to show that cutting carbon emissions can be a positive for the economy.”

Tighter emission standards

The report noted that, despite tightening emissions standards, the economic benefits continued, including employment growth and reduced costs for electricity consumers.

“During this period, the emissions cap for power plants in the region was lowered, and the prices power generators had to pay for emissions rose,” said report co-author Paul Hibbard, a principal with Analysis Group.

“Some observers had wondered whether tightening emissions targets would choke off the modest but consistent stream of economic benefits the region has seen since RGGI went into effect in 2009,” Hibbard said.

“But that didn’t happen. Economic benefits and job creation continued at magnitudes similar to what we’ve seen in previous study periods,” Hibbard said.

Leah Lopez Schmalz, chief program officer for the Connecticut Fund for the Environment, said the RGGI is one of the “best deals” for Connecticut.

“We know clean energy is the future, and this report proves it once again,” Schmalz said “Well-paying, impossibleto-outsource jobs like solar panel installer, HVAC tech and insulation expert are being generated by the efficiency and renewable energy programs that RGGI supports.”

Schmalz added, “It’s good for public health, too — another report last year found that pollution reduction from RGGI has prevented over 8,000 asthma attacks and 40,000 lost days of work around the region.”

Although New Jersey was a founding member of the RGGI, former New Jersey Gov. Chris Christie, a Republican, pulled out of the pact. The state’s new governor, Democrat Philip Murphy, a Democrat, rejoined the compact in January.