Pennsylvania officially exits regional climate initiative in budget deal despite never actually participating

Pennsylvania lawmakers voted Wednesday to formally withdraw from the Regional Greenhouse Gas Initiative (RGGI), cementing the state’s exit from a multi-state program designed to reduce carbon emissions from power plants. The withdrawal was included as part of negotiations to pass Pennsylvania’s significantly delayed state budget.

The decision marks the end of a years-long political and legal battle that began when former Governor Tom Wolf attempted to join RGGI during his administration. However, ongoing court challenges and legislative opposition prevented Pennsylvania from ever actually participating in the cap-and-trade program, which currently includes northeastern states like New York, Massachusetts, and Connecticut. RGGI works by setting limits on carbon emissions from power plants and allowing utilities to buy and sell emission allowances, creating financial incentives to reduce pollution.

Environmental advocates are calling the formal withdrawal a “huge blow” to climate action in Pennsylvania, arguing that participation could have generated millions in revenue for clean energy projects while reducing harmful emissions. The state is home to significant fossil fuel infrastructure and has been one of the largest carbon-emitting states in the nation.

The withdrawal reflects the ongoing political divide over climate policy in Pennsylvania, where the energy sector plays a major economic role. While supporters of the exit argue it protects jobs and keeps energy costs down, critics contend that the state is missing an opportunity to modernize its energy grid and address climate change while generating revenue for environmental programs.