Signs of GOP interest in solutions

Republicans have been slower than Democrats to accept the scientific consensus that climate change is real and that humans are causing most of it. And the other day President Trump motored over to EPA for a high-profile signing of an executive order aimed at undoing central portions of President Obama’s climate change agenda. Standing beside him was his number-one partner in climate change crime: EPA Administrator Scott Pruitt.

Yet there are signs of hope from the Grand Old Party. As Time magazine’s Justin Worland put it: “A small but growing number of Republicans have begun standing up for science.”

First was the February proposal by Republican heavyweights James Baker, George Shultz, Henry Paulson, Martin Feldstein, Thomas Stephenson, Greg Mankiw, and Rob Walton, under the banner of the Climate Leadership Council. Calling it a "Republican climate jailbreak strategy," they urged Congress to adopt a $40/metric ton carbon tax, with all the proceeds going back to taxpayers as “dividend checks.” Their initiative gave the drive to price carbon a distinctly Republican flavor.

Second was a strong pitch for climate action from the party’s 2012 standard-bearer. Governor Mitt Romney said it's essential that America lead the world's effort to address climate change and limit carbon emissions. "I happen to believe that there is climate change, and I think humans contribute to it in a substantial way, and therefore I look with openness to all the ideas that might be able to address that," he said… "The idea of doing nothing, in my view, is a recipe for disaster.

Third was the formation of a bipartisan House Climate Solutions Caucus, which as of today includes 15 Republicans and 15 Democrats. It was founded by Congressmen Carlos Curbelo (R) and Ted Deutch (D), whose trips home to South Florida provide regular and convincing evidence that the climate is changing and is threatening property and local economies. One Republican who joined the caucus recently is Darrell Issa, who has built a reputation as a hard-driving Republican. "Coastal communities, like mine in Southern California, are counting on us to come up with solutions that encourage a strong and vibrant economy, while also ensuring we are taking care of our environment,” he said. “Our country has some of the most innovative minds from anywhere in the world. I'm confident that by working together, we can tackle these challenges and come up with a better path forward. I'm pleased to join the Climate Solutions Caucus as a bipartisan opportunity for collaboration and also for its focus on economically viable solutions.”

Fourth was the March 15 introduction of a resolution by 17 House Republicans that acknowledges humans' impact on the climate and commits to studying and addressing “the causes and effects of measured changes to our global and regional climates, including mitigation efforts and efforts to balance human activities that have been found to have an impact.”

Fifth was a February 13 letter to the president from a bipartisan group of governors touting the benefits of renewable energy. According to David Roberts’ story in Vox, the letter pointed to the $222 million a year that wind farms pay to rural landowners and the $100 million a year renewable energy businesses invest in low-income areas. It asked Trump to help modernize the grid, support offshore wind development, extend renewable energy tax credits, and increase renewable energy research.

The letter came from the Governors’ Wind & Solar Energy Coalition, whose vice-chair is Kansas’ Sam Brownback, a longtime member of the GOP’s right flank. Here are some numbers that explain the governor’s enthusiasm for energy sources that, in the past, only Democrats could love: Wind power provides 30 percent of Kansas’ electricity. It has drawn $7 billion in capital investment to the state and supports, directly or indirectly, between 5,000 and 6,000 jobs there. Kansas landowners receive $10 to 15 million in lease payments every year from the industry. There are five wind manufacturing facilities in the state.

As Roberts put it in Vox: “Leadership on renewable energy gives them the chance to be heroes in the climate story.”

Sixth is polling showing that more and more Republican voters--even Trump voters--are rejecting the notion that climate change concern is just a big hoax; they want our government to take action. According to the Yale Program on Climate Change, half of Trump voters think global warming is happening, while only 30 percent think it is not.  Sixty-two percent support taxing and/or regulating the pollution that causes global warming, with 31 percent supporting both approaches. Half of Trump’s voters support requiring fossil fuel companies to pay a carbon tax and using the money to reduce other taxes by an equal amount, and 48 percent support setting strict carbon dioxide emissions limits on existing coal-fired power plants to reduce global warming and improve public health, even if the cost of electricity to consumers and companies would likely increase.

There are those who say that GOP members of Congress aren’t all that interested in what their constituents think; what matters more to them is what they hear from four long-time sources of campaign funds: the coal industry, portions of the oil and gas industry, the Koch Brothers, and Grover Norquist’s anti-tax coalition. On February 8, for example, Norquist tweeted: “Now that the GOP can repeal all the anti-energy, anti-job regs--the Left offers to trade those regs for a carbon tax. Nice try. No.” There are signs, though, that this quartet’s power may be waning. Meantime, ExxonMobil’s former CEO, Secretary of State Rex Tillerson, and his successor, Darren Woods, have urged adoption of a carbon tax.

Perhaps, in the wake of the health care train wreck on Capitol Hill, this is a moment for Republicans to snatch a victory--in fact, a double-victory. They want to cut taxes and see that as a way to bounce back from the health care loss. But they need a way to pay for those tax cuts. If they punt on a “pay-for,” they expose themselves to charges of hypocrisy on the need to control the national debt.

But the two pay-fors in the House Blueprint on tax reform are quickly sinking to the bottom of the Potomac. If, instead, the GOP opts for a $40/metric ton carbon fee, with gradual annual increases, there will be a $2 trillion flow of money to compensate for the tax cuts. This creative compromise offers Republicans a tax reform triumph and a free-market solution that would enable them to show Democrats that it is the GOP that found a way to beat back climate change.  



 

Senior GOP Voices Lift Campaign for a Fee on Carbon

Statement by the Partnership for Responsible Growth

For Immediate Release:

This is a big moment for the political debate on climate change. Seven of the nation’s most respected conservative Republicans have added their voices to the growing chorus saying that climate change is real and that a carbon tax is the smartest and most efficient solution.

The seven are James A. Baker III, Treasury secretary for President Reagan and secretary of state for President George H. W. Bush; Henry M. Paulson Jr., Treasury secretary for President George W. Bush; George P. Shultz, Treasury secretary for President Nixon and secretary of state for Mr. Reagan; Thomas Stephenson, a partner at Sequoia Capital, a venture-capital firm; Rob Walton, who recently completed 23 years as chairman of Walmart, and former Council of Economic Advisers Chairmen Martin Feldstein and Greg Mankiw. They were joined by Ted Halstead, the founder, president and CEO of the Climate Leadership Council and a member of our Advisory Board.

This is the latest sign of growing Republican concern about our climate and of our responsibility to provide future generations with a healthy economy and planet. Ten House Republicans have joined the new bipartisan House Climate Solutions Caucus, reflecting polls showing an increase in GOP voters’ support for government action.

The Baker-Shultz team proposes a $40 carbon tax with all proceeds returned to taxpayers as the “Republican free market” approach.  We think it more likely that this Congress will want to use the bulk of the funds to offset the costs of cutting taxes and that the debate over tax reform offers the best opportunity to price carbon. Our meetings with members of Congress also tell us that most Republicans also want tax reform paid for.

The size of the fee and the allocation of the proceeds can be hammered out by Congress. What matters far more is to put a price on carbon, as the long-time GOP leaders urge, and let the free market help us reduce carbon emissions. And the sooner Congress acts, the better our chances of hitting the science-based targets.

The business community has been moving toward action on climate change, and we hope more business leaders will join this campaign in the wake of yesterday’s proposal. If enough of them voice support, Congress will act.

Contact: Jesse Vogel, Managing Director, (614) 572-6046

Climate progress would reduce deaths caused by air pollution

It seems to be getting tougher to breathe. Schools were shut down in Rybnik, Poland, the first week of January because the pollution posed such a risk to children. Warsaw residents inhale the equivalent of 1,000 cigarettes a year. An estimated 45,000 Poles will die prematurely this year due to air pollution, The New York Times reported.

The nation burns a lot of coal, providing 85 percent of its electricity and 43 percent of its heat. When brutal cold swept into the country in early January, home heating units went into overdrive, and many of them are hugely inefficient.

Sadly, Poland is not the only country where breathing is killing people. The World Health Organization (WHO) found that 90 percent of the people on the planet live in areas with unsafe air pollution levels. If you spend any time looking at the international pages of newspapers and magazines, you’ve probably seen people in Beijing and Delhi walking around with protective masks. The World Bank estimates that air-related deaths cost $225 billion a year. That’s serious money.

The good news is that if the United States and other nations make progress on climate change, we can count on simultaneous progress on cleaning up the air we breathe. As we burn less coal and other fossil fuels, fewer of us will die prematurely. We’ll miss less work. Fewer kids will suffer from asthma. As Dr. Phil Landrigan of Mount Sinai Medical School told Time, “You make the case on public-health grounds, you make a moral case, you make a business case."

 

More Businesses Want Action on Climate

“Anyone who fears that the fight against climate change suffered a fatal blow when the United States elected a climate change skeptic should spend a couple of hours with some of the business leaders who are charging ahead toward a no-carbon future,” said William C. Eacho, after he spoke at the winter conference of the U.S. Business Council for Sustainable Development (BCSD).

“The conversations I had with representatives of General Motors, Ingersoll Rand, Entergy, ABB, and many other companies boosted my confidence that we will achieve the goal that scientists say we must,” said Eacho, co-founder of the Partnership for Responsible Growth (PRG). “But that doesn’t mean it’s going to be easy.”

Eacho delivered the keynote speech at the conference, hosted by Duke’s Fuqua School of Business January 11 and 12. He made the case that with the Trump administration so fervently opposed to federal regulations, a free-market climate solution makes more sense than ever. He also pointed out that the job growth that carbon-funded tax cuts would generate, plus the boost to American global competitiveness, would appeal to President-elect Trump.

A carbon fee would provide a number of benefits besides helping us combat climate change, he told the business audience. “The new administration and the new Congress are eager to create an infrastructure program, cut taxes, and take other steps. But somehow we need to pay for these initiatives--or the national debt will shoot up even faster. A carbon fee of $35 per metric ton, with annual increases, could bring in $2 trillion over ten years. There’s no alternative revenue stream that’s even close.”

While Eacho was speaking at Duke, a coalition of eight business and environmental groups was issuing the Business Backs a Low-Carbon USA statement. More than 530 companies and 100 investors have signed the statement, addressed to President-elect Trump, President Obama, members of Congress, and “global leaders.” Business Backs a Low-Carbon USA kicked off in December 2015 with a full-page ad in the Wall Street Journal urging U.S. and international leaders to adopt an ambitious climate agreement in Paris.

Are Voters Ready to Ditch Efforts to Combat Climate Change?

The American people spoke on November 8, and they want to ditch efforts to combat climate change, right? Wrong. According to the first poll since the election to deeply examine the policy views of self-identified Trump voters, 55 percent of them support upholding current climate change policies, with 30 percent saying that the U.S. should implement policies that go further.