How Shapiro’s RGGI retreat could shape Democrats’ climate messaging

By Adam Aton, Scott Waldman | 11/17/2025 06:16 AM EST

The Pennsylvania governor’s deal to trade climate regulations for a budget agreement could ripple far beyond his state’s borders.

Pennsylvania Gov. Josh Shapiro watches warmups before an NFL football game between the Philadelphia Eagles and the Detroit Lions.

Pennsylvania Gov. Josh Shapiro, seen here at Sunday's NFL football game between the Philadelphia Eagles and the Detroit Lions, traded his state's participation in a regional carbon market for Republican support of a $50 billion budget bill. Matt Slocum/AP

Democrats’ division over climate politics seemed to be narrowing this month, after a pair of moderates romped to victory in the New Jersey and Virginia gubernatorial races by weaving clean energy into an affordability pitch.

That unity lasted about a week. On Wednesday, Pennsylvania Gov. Josh Shapiro helped tear it back open.

The Democratic rising star cut a deal to end his state’s four-month budget stalemate: In exchange for Republicans supporting about $2 billion in additional spending, Pennsylvania would drop its yearslong effort to join the Regional Greenhouse Gas Initiative, the cap-and-trade system covering the electricity sectors of 10 states.

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The move was widely read as a sign that Democrats might continue to sideline climate, both electorally and in office. Shapiro is viewed as a possible 2028 presidential candidate — particularly because of his popularity in a swing state that is the second-largest U.S. source of natural gas.

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