Maryland has already reduced greenhouse gas (GHG) emissions - also called climate pollution - faster than almost any other state, achieving a 30% reduction in statewide GHG emissions from 2006 levels by 2020. The Climate Solutions Now Act (CSNA), passed into law in 2022, advances the most ambitious GHG reduction goals of any state in the nation. The law requires Maryland to reduce statewide GHG emissions 60% from 2006 levels by 2031 and achieve net-zero emissions by 2045 but does not outline a dedicated funding source to implement the plan. The Maryland Department of the Environment (MDE) is responsible for producing the plan to achieve the state’s GHG reduction goals but achieving the goals will require a whole-of-government approach.

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Figure 1: Major Milestones on Maryland’s Decarbonization Timeline

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​The new policies in this plan are modeled to reduce statewide GHG emissions by 646 million metric tons of carbon dioxide equivalent (MMTCO2e) between now and 2050. The societal benefit of this level of emissions reduction is estimated to be $135 billion based on estimates for the social cost of GHG emissions. As detailed in the plan, Maryland will add thousands of jobs and grow its economy while delivering on its status as a global leader in addressing climate change.

Household energy costs will decrease significantly under this plan. Today, the average household that uses heat pumps and drives EVs spends around $2,600 less annually in energy costs than those with natural gas heating and gasoline-powered cars. Savings for the all-electric household increase to around $4,000 annually compared to homes that are heated with oil or propane. Those savings are projected to increase over time as fossil fuels become more expensive and electricity rates remain comparatively stable. Robust federal and state incentives, paired with education, technical assistance, and training for building owners, contractors, automobile dealers, and other market actors, can help ensure that everyone can transition from fossil fuels and become part of the clean energy economy.

This plan includes detailed economic and public health impacts, workforce development opportunities, a funding plan, and implementation details such as the executive and legislative actions that are needed for implementation. Much of the regulatory implementation falls on MDE, which has the existing authority and legal obligation to adopt regulations to achieve the state’s GHG reduction requirements, but all of Maryland state government has a role to play in implementing the programs outlined. Importantly, the work ahead requires all Marylanders to work together. The results will benefit us all and Maryland’s future for many years to come.

Implementing this plan will require significant new investment in challenging fiscal times. As of December 2023, state revenues were projected to fall short of anticipated expenses for the next few fiscal years. Meanwhile, initial estimates show that achieving an equitable transition to a clean energy future could require a public sector investment of approximately $1 billion annually. The federal government’s historic investment in climate solutions, through the Inflation Reduction Act and other legislation, greatly bolsters Maryland’s chances of achieving its climate goals. However, more investment will be needed. Additional funding will enable more Marylanders to buy electric vehicles (EVs), install electric heat pumps, and otherwise switch to zero-emission devices that eliminate fossil fuel use and shield consumers from volatile fossil fuel prices.

Specific investments proposed by this plan include:

• Home electrification incentives - Covering up to 100% of project costs for low and moderate-income households and 50% of project costs for middle-income households to convert to heat pumps, heat pump water heaters, and other home energy efficiency and electrification products.
• EV incentives - Providing simple point-of-sale rebates to consumers to make EVs even more affordable to buy and own.
• Commercial building incentives - Reducing the cost of energy efficiency and electrification projects in commercial, multifamily, institutional, and other types of buildings.
• Infrastructure investments - Building out critical infrastructure, including EV charging stations, and supporting projects that reduce GHG emissions from Maryland’s industrial and waste sectors.
• Natural and working lands investments - Supporting tree plantings, forest management, wetland management, soil management, and other projects that are critical for storing carbon and helping the state achieve its net-zero emissions goals.

New investments will complement Maryland’s existing, substantial investment in renewable energy and energy efficiency programs through the EmPOWER Maryland program, Regional Greenhouse Gas Initiative, Renewable Portfolio Standard, and other existing programs.

While developing this plan, MDE held a series of seven listening sessions and obtained thousands of comments from the public that were taken into consideration. One consistent theme reflected in this plan is that the transition to a net-zero economy should be intentional but also practical and methodical. This plan lays out a sustainable path where incentives are provided at key decision points to consumers. For example, when a furnace needs to be replaced, a homeowner would have access to incentives that make the decision to electrify economical. When it is time to replace a gas-powered vehicle at the end of its useful life, consumers would have affordable options to purchase an EV and easy access to a reliable charging network.

The following are the state’s current and new policies that, when taken together and fully implemented, could achieve the 2031 emissions reduction goal.1

Economywide​

• Clean Economy Standard (new) - Directs the state to provide incentives, set sectoral standards, and set economywide standards to reduce GHG emissions.
• Expanded Strategic Energy Investment Fund (current, modified) - Distributes funding from Maryland’s participation in the Regional Greenhouse Gas Initiative and other programs to provide incentives for decarbonization projects across different sectors of Maryland’s economy. 
• New Funding Sources (potential) - Provides approximately $1 billion annually for new state investments in equitable climate action. See the page on funding for more information (see navigation bar).​​
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Electricity

• Renewable Portfolio Standard (current, modified) - Requires approximately 50% of electricity consumed in Maryland to be generated by renewable resources by 2030 and modifies definitions of qualifying resources. 

• POWER Act (current) - Sets a goal for the state to build 8,500 megawatts of offshore wind energy capacity by 2031.

• Energy Storage Act (current) - Sets a goal for Maryland to have 3,000 megawatts of energy storage capacity by 2033.

• Regional Greenhouse Gas Initiative (current, modified) - Maryland’s existing cap and invest program, which limits emissions from fossil fuel power plants and invests proceeds in Maryland communities, generated $151 million in 2022. Maryland is advocating for a stronger regional pollution cap aligned with Maryland’s and partner states’ 100% clean energy goals in ongoing multistate deliberations and planning to remove offsets and certain exemptions.

• Clean Power Standard (new) - Requires 100% of the electricity consumed in Maryland to be generated by clean and renewable sources of energy by 2035. 

• State Incentives for Renewable Energy (current) - Provides robust incentives for a wide range of renewable energy projects. 

Transportation

• Zero-Emission Vehicle Infrastructure Plan (current) - A comprehensive plan to further develop Maryland’s charging infrastructure for zero-emission vehicles (ZEVs).

• Advanced Clean Cars II (current) - Requires 100% of new cars, light-duty trucks, and sport utility vehicles (SUVs) sold in Maryland to be ZEVs by 2035. 

• Advanced Clean Trucks (current) - Requires certain types of medium and heavy-duty trucks sold in Maryland to be ZEVs in certain years.

• ZEV Transit Buses (current) - Requires state-owned transit buses to transition to ZEVs. 

• ZEV School Buses (current) - Requires school districts to purchase or contract for the use of ZEV school buses starting in 2024, provided that federal, state, or private funding is available to cover incremental costs, relative to non-ZEV buses. 

• Advanced Clean Fleets (potential) - Requires specific high-priority fleets of medium and heavy-duty vehicles to transition to ZEVs. 

• Maryland Transportation Plan (new) - Aims to reduce vehicle miles traveled per capita by 20% through infrastructure and programmatic investments.

• State Incentives for Purchasing EVs (current, modified) - Provides a point-of-sale rebate to lower the upfront cost of buying new and used EVs and provides bonus rebates to low and moderate income Marylanders. 

Buildings

• Energy Codes and Standards (current) - Requires the state to adopt the latest version of the International Energy Conservation Code, with possible amendment, within 18 months of issuance.

• EV-Ready Standards for New Buildings (current, modified) - Requires EV charging equipment to be installed during the construction of single-family detached houses, duplexes, and townhouses, and extends new requirements to multifamily buildings.

• Building Energy Performance Standards (current) - Requires certain buildings 35,000 square feet or larger to achieve specific energy efficiency and direct emissions standards, including achieving net-zero direct emissions by 2040. 

• State Government Lead by Example (current) - Requires all-electric new construction and other emission reduction measures for state-owned buildings. 

• EmPOWER (current, modified) - Requires utility companies and the state government to help customers improve energy efficiency and reduce GHG emissions, including through beneficial electrification. 

• Zero-Emission Heating Equipment Standard (new) - Requires new space and water heating systems to produce zero direct emissions starting later this decade. 

• Clean Heat Standard (new) - Requires clean heat measures to be deployed in buildings at the pace required to achieve the state’s GHG reduction requirements. 

• Gas System Planning (new) - Requires natural gas utility companies to plan their gas system investments and operations for a net-zero emissions future.

• State Incentives for Building Decarbonization (current, modified) - Provides substantial new funding for projects that improve energy efficiency and reduce emissions from residential, commercial, and institutional buildings statewide. 

Industry

• Hydrofluorocarbon Regulations (current) - Prohibits the use of certain products that contain particular chemicals with high global warming potential.  

• Control of Methane Emissions from the Natural Gas Industry (current) - Requires methane emissions from natural gas transmission and storage facilities to be mitigated through fugitive emissions detection and repair.

• Buy Clean (current) - Requires producers of cement and concrete mixtures to submit environmental product declarations to the state and for the state to establish a maximum acceptable global warming potential values for each category of eligible materials.

• State Incentives for Industrial Decarbonization (current, modified) - Supports decarbonization activities in Maryland’s industrial sector.

Waste

• Landfill Methane Regulations (current) - Requires landfills to detect and repair landfill gas leaks and operate emission control systems to reduce methane emissions. 

• Food Residuals Diversion Law (current) - Requires businesses that generate at least one ton of food residuals per week to separate the food residuals from other solid waste and ensure that the food residuals are composted.

• Sustainable Materials Management (current) - Sets goals for GHG emissions reductions, material-specific recycling rates, and overall statewide recycling and waste diversion rates.

• State Incentives for Waste Sector Decarbonization (current, modified) - Provides substantial funding for waste sector decarbonization activities.

Agriculture

• State Incentives for Agricultural Decarbonization (current, modified) - Provides additional funding for decarbonization activities in Maryland’s agricultural sector.

Forestry and Land Use

• Maryland 5 Million Trees Initiative (current) - Requires the state to plant and maintain five million native trees in Maryland by 2031, with at least 10% of these trees located in urban underserved areas of the state.

• Sustainable Growth (current) - Supports sustainable growth and land use/location efficiency to minimize GHG emissions from future land development; fosters transit use, walking, and biking; and reduces travel distances for daily mobility needs.

• Forest Management (current) - Promotes sustainable forestry management practices on public and private forest lands in Maryland. 

• Coastal Wetland Management (current) - Maximizes carbon sequestration and coastal resilience benefits by protecting and restoring coastal wetlands. 

• Agricultural Resource Conservation Programs (current) - Supports farmers in adopting practices that improve soil health and increase carbon sequestration on agricultural lands. 

• Forest Preservation and Retention Act (current) - Requires that when forested land is lost to development, it is either replaced through planting new trees or compensated for through conserving existing forest.

• State Incentives for Forestry and Land Use (current, modified) - Provides additional support for activities that promote enhanced carbon sequestration in Maryland’s forestry and land use sector.