New York to propose GHG market rules in 'coming months’

Market: Electricity, Emissions, Natural gas, Oil products
14/01/25

Draft rules for New York's carbon market will be ready in the "coming months," governor Kathy Hochul (D) said today.

Regulators from the Department of Environmental Conservation (DEC) and the New York State Energy Research and Development Authority (NYSERDA) "will take steps forward on" establishing a cap-and-invest program and propose new emissions reporting requirements for sources while also creating "a robust investment planning process," Hochul said during her state of the state message.

But the governor did not provide a timeline for the process beyond saying the agency's work do this work "over the coming months."

Hochul's remarks come after regulators in September delayed plans to begin implementing New York's cap-and-invest program (NYCI) to 2026. At the time, DEC deputy commissioner Jon Binder said that draft regulations would be released "in the next few months."

DEC, NYSERDA and Hochul's office each did not respond to requests for comment.

Some environmental groups applauded Hochul's remarks, while also expressing concern about the state's next steps.

Evergreen Action noted that the timeline for NYCI "appears uncertain" and called on lawmakers to "commit to this program in the 2025 budget."

"For New York's economy, environment and legacy, we hope the governor commits to finalizing a cap-and-invest program this year," the group said.

State law from 2019 requires New York to achieve a 40pc reduction in greenhouse gas (GHG) emissions from 1990 levels by 2030 and an 85pc reduction by 2050. A state advisory group in 2022 issued a scoping plan that recommended the creation of an economy-wide carbon market to help the state reach those goals.

By Ida Balakrishna

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