Maryland businesses oppose new carbon market, fear higher costs

By Anne C. Mulkern | 10/30/2024 06:13 AM EDT

Three groups including the Maryland Chamber of Commerce warn about a carbon market the state is considering launching.

Maryland Gov. Wes Moore (D) is exploring starting a carbon market in his state.

Maryland Gov. Wes Moore is exploring starting a carbon market in his state. Business groups are opposing the idea, saying it will increase costs and hurt the state economy. (Francis Chung/POLITICO

Opposition is mounting to the possibility that Maryland might launch a cap-and-trade-style carbon market.

The Maryland Chamber of Commerce along with a coalition of three area utilities and an alliance of utility, labor and business interests are arguing that such a program would increase utility bills, raise costs on businesses and low-income households, and hurt the state economy.

The groups voiced their opposition in recent letters to the Maryland Commission on Climate Change, which is expected to vote in November on whether to recommend a carbon market program to Democratic Gov. Wes Moore and the state legislature. The commission, an advisory panel, is appointed by the governor and the legislature.

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A statewide carbon market regulation would set a limit on businesses’ greenhouse gas emissions from the largest polluters, and then force them to pay a penalty if they can’t cut below the limit. Maryland would call the policy “cap and invest,” the latest moniker for the market.

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