The Agency of Natural Resources (ANR) and Vermont Agency of Transportation (AOT) are studying cap-and-invest as a strategy that could support meeting the State’s requirements for cutting climate pollution. Cap-and-invest programs work by placing a declining cap on greenhouse gas emissions and reinvesting the proceeds in climate action, such as energy efficiency, weatherization, and resilience.
The study will evaluate the options for joining a cap-and-invest program and the potential benefits and costs of such a program to Vermonters. This work is required by the legislature and happening concurrently with the update to the Climate Action Plan.
Why is the State studying cap-and-invest?
In 2024, the Vermont State Legislature passed Act 148 (the Transportation Bill) which requires the Agency of Natural Resources and Agency of Transportation to study a cap-and-invest program as a strategy that could support meeting the State's requirements for cutting climate pollution. The State must reduce greenhouse gas emissions by 40 percent below 1990 levels by 2030 and 80 percent below 1990 levels by 2050. The transportation sector is responsible for achieving 40% of those required reductions, while the buildings and thermal sector is responsible for just over 30%.
Who is involved?
The Agency of Natural Resources and the Agency of Transportation are responsible for coordinating and managing this statewide effort.
Technical Advisory Committee
The study is guided by the Technical Advisory Committee (TAC) that includes representatives from the Vermont Climate Council and the State Treasurer’s Office in addition to staff from the Agency of Natural Resources and the Agency of Transportation.
Public and Stakeholder Engagement
The study team is seeking input for the study from members of the public and other stakeholders, including representatives of business, freight, rail, environmental, and equity interests.
Virtual Public Information Meetings
The State is holding two series of virtual public information meetings to hear from members of the public and other interested parties.
- Virtual Public Information - Series 1: October 2024
The project team held two public meetings in early October 2024. Participants were introduced to the study and learned how a cap-and-invest program could help Vermont meet its climate goals, as well as the potential benefits and impacts on Vermonters. Attendees were invited to ask questions and comment on the study.
Watch the recording
Read the meeting summary (PDF)
View the slide deck (PDF)
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Virtual Public Information - Series 2: January 2025
The second series of meetings will be held in January 2025. Participants will learn about the study’s findings and will be asked to provide input on draft recommendations that will be delivered to the Legislature in February 2025.
Virtual Focus Group Meetings
Two rounds of virtual focus group meetings are being held with relevant parties. These include community-based organizations representing equity and environmental justice interests, potentially obligated industries, the business community, and environmental groups. The first round of focus group meetings is taking place in October and November 2024 to gather initial input on issues. The second round of focus groups meetings will take place in January 2025 to review findings and gather input on draft recommendations that will be delivered to the Legislature in February 2025 by the Office of the Treasurer.
Study Timeline
The project team is analyzing different cap-and-invest program scenarios and the resulting benefits and impacts to Vermont, including carbon pollution reductions, health benefits, and economic effects for Vermont’s households and businesses. This work will be completed in late 2024, after which the state project team and TAC will identify a recommended policy approach. This will be provided to the legislature for consideration in the 2025 session by the Treasurer’s Office.
