WASHINGTON (August 27, 2026) — A new report from the Progressive Policy Institute (PPI) finds that Maryland has built one of the country’s most energy-efficient, lowest-emitting economies, but warns that the state’s sweeping climate agenda is increasingly out of step with soaring electricity prices, shrinking federal support, and a widening capacity gap on the regional grid.
Authored by Neel Brown, Managing Director at PPI, and John Kemp, an internationally recognized energy markets expert, “Maryland’s Climate Goals Facing a New Reality” examines the state’s path toward the targets set under its 2022 Climate Solutions Now Act, including a 60% cut in greenhouse gas emissions below 2006 levels by 2031 and net-zero emissions by 2045.
Maryland’s energy-related emissions per person are the lowest of any state, just 55% of the national average, thanks to a power mix dominated by zero-emission nuclear and lower-emission gas that has largely displaced coal. Total emissions have fallen more than twice as fast as the national rate since 2005. But like other states inside the PJM Interconnection, Maryland is now being squeezed by explosive data center growth in Northern Virginia, which is driving up regional wholesale power costs. Residential electricity prices climbed at an average annual rate of 2.4% between 2019 and 2024, nearly two-and-a-half times the national rate, and PJM wholesale prices jumped 47% in 2025 alone.
“Maryland has proven that a state can cut emissions faster than the rest of the country while keeping electricity bills manageable,” said Brown. “But the easy wins from switching off coal are behind it. Lawmakers should prioritize the programs that deliver real emissions reductions, protect the grid, and keep costs in check for ratepayers, rather than mandating an outcome the state’s own numbers say isn’t achievable on this timeline.”
The report notes that Maryland’s climate plan spans 21 separate initiatives, from EV charging expansion to farmland conservation to building electrification, at an estimated combined cost of $1 billion a year. That price tag is complicated by federal funding cuts under the Trump administration, which have put much of the financing Maryland officials were counting on in doubt. A January 2026 analysis from the University of Maryland’s Center for Global Sustainability projects the state will reach only a 42% emissions cut by 2031, far short of the 60% statutory goal.
Polling shows broad public support for expanding natural gas and nuclear generation to meet rising demand, while local measures such as Montgomery County’s push to ban natural gas appliances face strong public opposition. To keep the grid stable, Maryland has already had to delay retirement of its last coal-fired plant, Brandon Shores, from 2025 to 2029, and fast-track two new natural gas units in Harford County.
To keep the state’s climate strategy on solid footing, the authors make three key recommendations:
The authors conclude that Maryland can remain a national climate leader without sacrificing the affordability and reliability gains that have made it a model for other states, but only by anchoring its strategy in today’s cost and capacity realities rather than a deadline set before the current price pressures emerged.
Read and download the report here.
Founded in 1989, PPI is a catalyst for policy innovation and political reform based in Washington, D.C. Its mission is to create radically pragmatic ideas for moving America beyond ideological and partisan deadlock. Find an expert and learn more about PPI by visiting progressivepolicy.org. Follow us at @ppi.
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Media Contact: Ian O’Keefe – iokeefe@ppionline.org
