New Jersey to withdraw from regional climate change compact

New Jersey will withdraw from the ten-state regional compact set up by northeastern states to coordinate greenhouse gas emission reductions.

Gov. Christopher Christie announced Thursday that he would pull the Garden State out of the Regional Greenhouse Gas Initiative by the end of the year.

Christie labeled the RGGI a "failure" during a Trenton news conference.

However, a statement by the nine remaining members indicated that Christie's decision will not affect the compact's ongoing activities.

"With each state exercising its independent authority to achieve low-cost greenhouse gas emissions reductions, the RGGI market-based program has widespread support across the region and will continue," the statement said.

The member states of the RGGI aim to lower greenhouse gas emissions within their borders by ten percent by 2018. To do so, each state limits emissions from electric power plants. Regulated entities can purchase permission to pollute through auctions, with regulated entities in the region able to take advantage of pollution allowances made available in any of the member states.

Funds generated through the emission allowance auctions are used to fund clean energy projects. As of February about $860 million had been invested in these programs.

The RGGI's cap-and-trade program was the first market-based mechanism for reducing greenhouse gas emissions in the country.

New Hampshire, another of the RGGI's members, experienced earlier this year an effort by legislative Republicans to force the state's withdrawal from the compact. The attempt was blocked in the state senate.

New Jersey has been a member since 2008.