OREANDA-NEWS. Five northeastern US states and the District of Columbia plan to develop a market-based mechanism to reduce greenhouse gas (GHG) emissions from motor vehicles.

Connecticut, Delaware, New York, Rhode Island, Vermont and the District of Columbia today said they would work together to establish a transportation sector program that could involve emissions trading, a carbon tax or similar measures to reduce GHG emissions. The states said the program would achieve "significant" emissions cuts, possibly within the range of 29-40pc from 2011 levels by 2030.

"I am proud to join my fellow governors and northeast states in working toward a regional agreement to curb the devastating effects of climate pollution from the transportation sector," Vermont governor Peter Shumlin (D) said.

The states said they would work through the Transportation and Climate Initiative, a 12-state collaboration this is deploying clean vehicles, to develop the new program. The five states participating in today's announcment are members of the Regional Greenhouse Gas Initiative, a nine-state power-sector CO2 cap-and-trade program.

The states and the US capital made the announcement in conjunction with the release of a report by the Georgetown Climate Center on GHG emissions from the transportation sector in the northeastern US. The report says a mechanism such as "a carbon fee, mileage-based user fee, or emissions budget program" in conjunction with other state policies could lead to emissions cuts of 32-40pc by 2030. State and federal policies already in place will cut motor vehicle CO2 emissions by 29pc by 2030, according to the report.