Cross-Sector

Carbon Pollution Pricing

Carbon pricing is a market-based mechanism that aims to reduce the amount of greenhouse gases (GHGs) emitted by imposing a fee or a cap on carbon dioxide emissions. Regulated entities can either reduce emissions and stay under the cap, or continue emitting and pay more. The revenue generated from these polluter fees are often reinvested in communities facing the brunt of environmental and climate harms. This policy intervention aims to shift the cost of harmful pollution to emitters, rather than the public, based on the social cost of carbon.

There are various forms of carbon pricing. One common form is through an emissions trading system (ETS) such as cap-and-trade, which establishes an upper limit (“cap”) on total emissions, and then divides this cap into emissions permits or credits that are distributed to all regulated entities, either for free or through an auction. Those that reduce their emissions can trade any unused credits on the carbon market; emitters who do not reduce their emissions enough can then buy those unused emissions credits, and emissions in the overall ETS stay below the established cap. Another form is through a carbon tax, which directly prices carbon through a specific tax rate per ton of emissions. A carbon tax relies on emitters changing their behavior to avoid incurring increased costs from emissions.

Request Policy Assistance

Glossary of Terms

States with Policy Enacted

In Progress

Partially Enacted

See States List

Key Resources

Glossary of Terms

States with Statutory Greenhouse Gas Reduction and Reporting Requirements

A report and map that tracks states with established GHG emissions reduction goals and targets.

2023

Source:

National Conference of State Legislatures

Environmental Justice and Carbon Pricing: Can They Be Reconciled?

A research article exploring the environmental justice concerns of carbon pricing and providing recommendations for an EJ-informed carbon pricing scheme.

2023

Source:

Global Challenges

Carbon Pricing Explainer Series

An explainer that provides an introduction to carbon pricing, including carbon taxes and cap-and-trade programs, the benefits and design of pricing policies, and applications around the globe.

2022

Source:

Resources for the Future

Carbon Pricing

A chapter exploring legal issues and policy considerations when designing a carbon pricing program and highlighting existing and proposed programs.

2024

Source:

LPDD

Model States

Glossary of Terms

California

California's Cap-and-Trade Program covers the electricity, buildings, transportation, and industrial sectors, covering around 80% of state emissions.

2012

Establishing Policies

Massachusetts

The Regional Greenhouse Gas Initiative (RGGI) covers the electricity sector.

2007

Establishing Policies

New York

The Regional Greenhouse Gas Initiative (RGGI) covers the electricity sector.

The state is also developing an economywide cap-and-invest program.

2005

Establishing Policies

Washington

Washington's Cap-and-Invest Program covers the electricity, buildings, transportation, and industrial sectors, covering around 75% of state emissions.

2023

Establishing Policies

Glossary of Terms

Filters

Status	State Sort descending	Region	YR Enacted
Not Enacted	Alabama Empty column Carbon pollution pricing establishes a pollution fee or cap-and-trade program on the greenhouse gas emissions associated with each sector/source of emissions within the state. Programs typically cover the electricity, buildings, transportation, and/or industrial sectors. Empty column	Southeast
Not Enacted	Alaska Empty column Carbon pollution pricing establishes a pollution fee or cap-and-trade program on the greenhouse gas emissions associated with each sector/source of emissions within the state. Programs typically cover the electricity, buildings, transportation, and/or industrial sectors. Empty column	West
Not Enacted	Arizona Empty column Carbon pollution pricing establishes a pollution fee or cap-and-trade program on the greenhouse gas emissions associated with each sector/source of emissions within the state. Programs typically cover the electricity, buildings, transportation, and/or industrial sectors. Empty column	Southwest
Not Enacted	Arkansas Empty column Carbon pollution pricing establishes a pollution fee or cap-and-trade program on the greenhouse gas emissions associated with each sector/source of emissions within the state. Programs typically cover the electricity, buildings, transportation, and/or industrial sectors. Empty column	Southeast
Enacted	California Empty column California's Cap-and-Trade Program covers the electricity, buildings, transportation, and industrial sectors, covering around 80% of state emissions. Establishing Policies Title 17, CCR, sections 95801-96022 (2018) California's Cap-and-Trade Program Empty column	West	2012
Not Enacted	Colorado Empty column Carbon pollution pricing establishes a pollution fee or cap-and-trade program on the greenhouse gas emissions associated with each sector/source of emissions within the state. Programs typically cover the electricity, buildings, transportation, and/or industrial sectors. Empty column	West
Enacted	Connecticut Empty column The Regional Greenhouse Gas Initiative (RGGI) covers the electricity sector. Establishing Policies R.C.S.A. 22a-174-31a (2015) R.C.S.A. 22a-174-31 (2019) Conn. Gen. Stat. Section 22a-200c (2022) The Regional Greenhouse Gas Initiative (RGGI) Empty column	Northeast	2005
Enacted	Delaware Empty column The Regional Greenhouse Gas Initiative (RGGI) covers the electricity sector. Establishing Policies Title 7, Chapter 60, of the Delaware Code, subchapter IIA, §6043 (2014) 7 Del. Admin. Code § 1147: CO2 Budget Trading Program Regulations (2018) The Regional Greenhouse Gas Initiative (RGGI) Empty column	Southeast	2005
Not Enacted	Florida Empty column Carbon pollution pricing establishes a pollution fee or cap-and-trade program on the greenhouse gas emissions associated with each sector/source of emissions within the state. Programs typically cover the electricity, buildings, transportation, and/or industrial sectors. Empty column	Southeast
Not Enacted	Georgia Empty column Carbon pollution pricing establishes a pollution fee or cap-and-trade program on the greenhouse gas emissions associated with each sector/source of emissions within the state. Programs typically cover the electricity, buildings, transportation, and/or industrial sectors. Empty column	Southeast
Not Enacted	Hawai‘i Empty column Carbon pollution pricing establishes a pollution fee or cap-and-trade program on the greenhouse gas emissions associated with each sector/source of emissions within the state. Programs typically cover the electricity, buildings, transportation, and/or industrial sectors. Empty column	West
Not Enacted	Idaho Empty column Carbon pollution pricing establishes a pollution fee or cap-and-trade program on the greenhouse gas emissions associated with each sector/source of emissions within the state. Programs typically cover the electricity, buildings, transportation, and/or industrial sectors. Empty column	West
Not Enacted	Illinois Empty column Carbon pollution pricing establishes a pollution fee or cap-and-trade program on the greenhouse gas emissions associated with each sector/source of emissions within the state. Programs typically cover the electricity, buildings, transportation, and/or industrial sectors. Empty column	Midwest
Not Enacted	Indiana Empty column Carbon pollution pricing establishes a pollution fee or cap-and-trade program on the greenhouse gas emissions associated with each sector/source of emissions within the state. Programs typically cover the electricity, buildings, transportation, and/or industrial sectors. Empty column	Midwest
Not Enacted	Iowa Empty column Carbon pollution pricing establishes a pollution fee or cap-and-trade program on the greenhouse gas emissions associated with each sector/source of emissions within the state. Programs typically cover the electricity, buildings, transportation, and/or industrial sectors. Empty column	Midwest
Not Enacted	Kansas Empty column Carbon pollution pricing establishes a pollution fee or cap-and-trade program on the greenhouse gas emissions associated with each sector/source of emissions within the state. Programs typically cover the electricity, buildings, transportation, and/or industrial sectors. Empty column	Midwest
Not Enacted	Kentucky Empty column Carbon pollution pricing establishes a pollution fee or cap-and-trade program on the greenhouse gas emissions associated with each sector/source of emissions within the state. Programs typically cover the electricity, buildings, transportation, and/or industrial sectors. Empty column	Southeast
Not Enacted	Louisiana Empty column Carbon pollution pricing establishes a pollution fee or cap-and-trade program on the greenhouse gas emissions associated with each sector/source of emissions within the state. Programs typically cover the electricity, buildings, transportation, and/or industrial sectors. Empty column	Southeast
Enacted	Maine Empty column The Regional Greenhouse Gas Initiative (RGGI) covers the electricity sector. Establishing Policies Title 38, Chapter 3-B (2017) DEP Chapter 156 (2020) DEP Chapter 158 (2020) The Regional Greenhouse Gas Initiative (RGGI) Empty column	Northeast	2005
Enacted	Maryland Empty column The Regional Greenhouse Gas Initiative (RGGI) covers the electricity sector. Establishing Policies Title 26, Subtitle 9 (2018) The Regional Greenhouse Gas Initiative (RGGI) (2007) Empty column	Southeast	2007
Enacted	Massachusetts Empty column The Regional Greenhouse Gas Initiative (RGGI) covers the electricity sector. Establishing Policies 225 CMR 13.00 (2018) M.G.L. c. 21A, § 22. (2022) 310 CMR 7.00 (2024) The Regional Greenhouse Gas Initiative (RGGI) Empty column	Northeast	2007
Not Enacted	Michigan Empty column Carbon pollution pricing establishes a pollution fee or cap-and-trade program on the greenhouse gas emissions associated with each sector/source of emissions within the state. Programs typically cover the electricity, buildings, transportation, and/or industrial sectors. Empty column	Midwest
Not Enacted	Minnesota Empty column Carbon pollution pricing establishes a pollution fee or cap-and-trade program on the greenhouse gas emissions associated with each sector/source of emissions within the state. Programs typically cover the electricity, buildings, transportation, and/or industrial sectors. Empty column	Midwest
Not Enacted	Mississippi Empty column Carbon pollution pricing establishes a pollution fee or cap-and-trade program on the greenhouse gas emissions associated with each sector/source of emissions within the state. Programs typically cover the electricity, buildings, transportation, and/or industrial sectors. Empty column	Southeast
Not Enacted	Missouri Empty column Carbon pollution pricing establishes a pollution fee or cap-and-trade program on the greenhouse gas emissions associated with each sector/source of emissions within the state. Programs typically cover the electricity, buildings, transportation, and/or industrial sectors. Empty column	Midwest
Not Enacted	Montana Empty column Carbon pollution pricing establishes a pollution fee or cap-and-trade program on the greenhouse gas emissions associated with each sector/source of emissions within the state. Programs typically cover the electricity, buildings, transportation, and/or industrial sectors. Empty column	West
Not Enacted	Nebraska Empty column Carbon pollution pricing establishes a pollution fee or cap-and-trade program on the greenhouse gas emissions associated with each sector/source of emissions within the state. Programs typically cover the electricity, buildings, transportation, and/or industrial sectors. Empty column	Midwest
Not Enacted	Nevada Empty column Carbon pollution pricing establishes a pollution fee or cap-and-trade program on the greenhouse gas emissions associated with each sector/source of emissions within the state. Programs typically cover the electricity, buildings, transportation, and/or industrial sectors. Empty column	West
Enacted	New Hampshire Empty column The Regional Greenhouse Gas Initiative (RGGI) covers the electricity sector. Establishing Policies Chapter Env-A 4800 (2014) Chapter Env-A 4600 (2020) Chapter Revised Statutes Annotated (RSA) 125-O:20-29p (2022) The Regional Greenhouse Gas Initiative (RGGI) Empty column	Northeast	2005
Enacted	New Jersey Empty column The Regional Greenhouse Gas Initiative (RGGI) covers the electricity sector. Establishing Policies N.J.A.C. 7:27C (2019) N.J.A.C. 7:27D (2019) The Regional Greenhouse Gas Initiative (RGGI) Empty column	Northeast	2020
Not Enacted	New Mexico Empty column Carbon pollution pricing establishes a pollution fee or cap-and-trade program on the greenhouse gas emissions associated with each sector/source of emissions within the state. Programs typically cover the electricity, buildings, transportation, and/or industrial sectors. Empty column	Southwest
Enacted	New York Empty column The Regional Greenhouse Gas Initiative (RGGI) covers the electricity sector. The state is also developing an economywide cap-and-invest program. Establishing Policies 21 NYCRR Part 507 (2020) 6 NYCRR Part 242 (2022) The Regional Greenhouse Gas Initiative (RGGI) Empty column	Northeast	2005
Not Enacted	North Carolina Empty column Carbon pollution pricing establishes a pollution fee or cap-and-trade program on the greenhouse gas emissions associated with each sector/source of emissions within the state. Programs typically cover the electricity, buildings, transportation, and/or industrial sectors. Empty column	Southeast
Not Enacted	North Dakota Empty column Carbon pollution pricing establishes a pollution fee or cap-and-trade program on the greenhouse gas emissions associated with each sector/source of emissions within the state. Programs typically cover the electricity, buildings, transportation, and/or industrial sectors. Empty column	Midwest
Not Enacted	Ohio Empty column Carbon pollution pricing establishes a pollution fee or cap-and-trade program on the greenhouse gas emissions associated with each sector/source of emissions within the state. Programs typically cover the electricity, buildings, transportation, and/or industrial sectors. Empty column	Midwest
Not Enacted	Oklahoma Empty column Carbon pollution pricing establishes a pollution fee or cap-and-trade program on the greenhouse gas emissions associated with each sector/source of emissions within the state. Programs typically cover the electricity, buildings, transportation, and/or industrial sectors. Empty column	Southwest
In-Progress	Oregon Empty column Oregon is undergoing new rulemaking to reestablish its Climate Protection Program, which will cover fossil fuel emissions used in transportation, residential, commercial and industrial settings. The new program will start in 2025. Establishing Policies Oregon's Climate Protection Program Empty column	West
Not Enacted	Pennsylvania Empty column Carbon pollution pricing establishes a pollution fee or cap-and-trade program on the greenhouse gas emissions associated with each sector/source of emissions within the state. Programs typically cover the electricity, buildings, transportation, and/or industrial sectors. Empty column	Northeast
Enacted	Rhode Island Empty column The Regional Greenhouse Gas Initiative (RGGI) covers the electricity sector. Establishing Policies Air Pollution Control Regulation No. 46 (2022) Air Pollution Control Regulation No. 47 (2022) R.I. Gen. Laws 23-82.1-23-82-7 (2023) The Regional Greenhouse Gas Initiative (RGGI) Empty column	Northeast	2007
Not Enacted	South Carolina Empty column Carbon pollution pricing establishes a pollution fee or cap-and-trade program on the greenhouse gas emissions associated with each sector/source of emissions within the state. Programs typically cover the electricity, buildings, transportation, and/or industrial sectors. Empty column	Southeast
Not Enacted	South Dakota Empty column Carbon pollution pricing establishes a pollution fee or cap-and-trade program on the greenhouse gas emissions associated with each sector/source of emissions within the state. Programs typically cover the electricity, buildings, transportation, and/or industrial sectors. Empty column	Midwest
Not Enacted	Tennessee Empty column Carbon pollution pricing establishes a pollution fee or cap-and-trade program on the greenhouse gas emissions associated with each sector/source of emissions within the state. Programs typically cover the electricity, buildings, transportation, and/or industrial sectors. Empty column	Southeast
Not Enacted	Texas Empty column Carbon pollution pricing establishes a pollution fee or cap-and-trade program on the greenhouse gas emissions associated with each sector/source of emissions within the state. Programs typically cover the electricity, buildings, transportation, and/or industrial sectors. Empty column	Southwest
Not Enacted	Utah Empty column Carbon pollution pricing establishes a pollution fee or cap-and-trade program on the greenhouse gas emissions associated with each sector/source of emissions within the state. Programs typically cover the electricity, buildings, transportation, and/or industrial sectors. Empty column	West
Enacted	Vermont Empty column The Regional Greenhouse Gas Initiative (RGGI) covers the electricity sector. Establishing Policies Vermont CO2 Budget Trading Program Regulations (2018) The Regional Greenhouse Gas Initiative (RGGI) Empty column	Northeast	2005
Not Enacted	Virginia Empty column Carbon pollution pricing establishes a pollution fee or cap-and-trade program on the greenhouse gas emissions associated with each sector/source of emissions within the state. Programs typically cover the electricity, buildings, transportation, and/or industrial sectors. Empty column	Southeast
Enacted	Washington Empty column Washington's Cap-and-Invest Program covers the electricity, buildings, transportation, and industrial sectors, covering around 75% of state emissions. Establishing Policies SB 5126 (2021) Washington's Cap-and-Invest Program (2023) Empty column	West	2023
Not Enacted	West Virginia Empty column Carbon pollution pricing establishes a pollution fee or cap-and-trade program on the greenhouse gas emissions associated with each sector/source of emissions within the state. Programs typically cover the electricity, buildings, transportation, and/or industrial sectors. Empty column	Southeast
Not Enacted	Wisconsin Empty column Carbon pollution pricing establishes a pollution fee or cap-and-trade program on the greenhouse gas emissions associated with each sector/source of emissions within the state. Programs typically cover the electricity, buildings, transportation, and/or industrial sectors. Empty column	Midwest
Not Enacted	Wyoming Empty column Carbon pollution pricing establishes a pollution fee or cap-and-trade program on the greenhouse gas emissions associated with each sector/source of emissions within the state. Programs typically cover the electricity, buildings, transportation, and/or industrial sectors. Empty column	West

Carbon Pollution Pricing

Key Resources

Model States

Carbon Pollution Pricing By State