Virginia attorney general paves way for state to rejoin regional greenhouse gas initiative carbon market

Virginia is moving closer to rejoining a major regional carbon trading program after its newly elected Democratic Attorney General Jay Jones took decisive action Thursday to reverse the state’s controversial exit from the initiative.

Jones’ move creates a clear pathway for Virginia to rejoin the Regional Greenhouse Gas Initiative (RGGI), a collaborative carbon market that helps northeastern states reduce greenhouse gas emissions from power plants. The attorney general’s action comes on the heels of a November 2024 court ruling that declared Virginia’s withdrawal from the program illegal. A judge in Floyd County Circuit Court determined that the state’s former Republican governor had unlawfully pulled Virginia out of RGGI.

RGGI operates as a cap-and-trade system where participating states set limits on carbon emissions from power plants and allow utilities to buy and sell emission allowances. Since its launch in 2009, the program has been credited with significantly reducing greenhouse gas emissions across member states while generating revenue for clean energy investments. Virginia originally joined RGGI but was withdrawn under the previous Republican administration, creating legal challenges and uncertainty for the state’s climate policy.

The development represents a significant shift in Virginia’s environmental stance under new Democratic leadership. By rejoining RGGI, Virginia would once again participate in coordinated regional efforts to combat climate change while potentially generating millions in revenue from carbon allowance auctions that could fund renewable energy projects and energy efficiency programs across the state.