Resources for the Future Inc.
01/28/2026 | Press release | Distributed by Public on 01/29/2026 10:29
Elements of a Cap-and-Invest Program Design for Maryland
Elements of a Cap-and-Invest Program Design for Maryland
This report outlines policy options for designing a cap-and-invest program in the state of Maryland.
Date
Jan. 28, 2026
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1 minuteWhy it Matters
Eliminating greenhouse gas emissions throughout the global economy will entail comprehensive actions to reshape society's approach to producing and using energy. Shifting to complete reliance on low- and zero-emissions sources of energy will require substantial investments in technology and infrastructure. Such investments could simultaneously drive economic growth and deliver environmental benefits in disproportionately impacted communities. Accomplishing a rapid energy transition-and doing so in a way that seizes the economic opportunity of that transition-will require a supportive policy framework.
Maryland Cap and Invest
The state of Maryland has already taken significant policy steps to guide its own transition. Reductions in emissions from the power sector are guided by Maryland's membership in the Regional Greenhouse Gas Initiative and further supported by the state's renewable portfolio standard. Efforts to address transportation emissions include the forthcoming Advanced Clean Cars II rule, under which the share of zero-emissions vehicles will reach 100 percent of new-vehicle sales by 2035, and the Advanced Clean Truck rule (effective in 2027). Building energy performance standards will require a 20 percent reduction in direct GHG emissions from existing large buildings by 2030, relative to 2025.
This slide deck provides a comprehensive policymaker toolkit outlining the options for the design of such an economy-wide cap-and-invest program in Maryland. We draw on both policy science literature and experience in existing emissions markets. Market-based mechanisms that place a price on emissions are an effective tool to incentivize cost-effective emissions reductions because they give private parties the flexibility to reduce emissions where it is least expensive to do so. An emissions cap boosts confidence that the climate plan goals, and the overall emissions reduction target, will be achieved. Adding the investment framework can provide incentives to leverage federal and private funds to achieve the goals and place equity for small businesses and low- and moderate-income households at the front of the energy transformation. However, in designing this emissions cap-and-invest program, policymakers face many decisions that will influence its fairness, effectiveness, and enforceability.
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Resources for the Future Inc. published this content on January 28, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on January 29, 2026 at 16:29 UTC. If you believe the information included in the content is inaccurate or outdated and requires editing or removal, please contact us at [email protected]