The New Climate
It’s time for an approach to global climate policy that can win support from all sides of the political spectrum, create effective long-term incentives for energy innovation, and use the strength of the market to curb the effects of climate change on a global scale.
Virtually all knowledgeable economists and policy experts agree that the cheapest and most effective way to reduce carbon is to put a price on it. Doing so would make all business and personal investment and consumption decisions reflect the anticipated external costs to society of the emissions resulting from those actions.
The majority of Americans (in both parties) agree that climate change is a problem that we ought to face head-on. Now is the time for a free market, pro-growth climate solution.
The Facts about Carbon Pricing
A carbon fee could generate significant revenue for current Congressional priorities.
- $1 trillion from a $25/metric ton of CO2-e price increasing a real 2 percent per year according to the Congressional Budget Office.
- $2.2 trillion from a $49/metric ton of CO2-e price according to Treasury.
Despite Republican skepticism, Trump Country supports climate action.
- 76% of registered Republicans now believe climate change is real.
- 55% of Trump voters believe we need to keep our Paris Climate Commitments.
Economists agree that pricing carbon is the most effective response to climate risk.
- The atmosphere’s capacity to absorb greenhouse gas emissions is a scarce resource.
- Each year we wait the cost to society of addressing the issue goes up.
- Pricing carbon reduces emissions faster than regulation.
Pairing a carbon fee with pro-growth policy could create jobs and address climate.
- Carbon-funded tax reform could create jobs and boost U.S. competitiveness.
- Revenue could protect low- and middle-income families and retrain coal workers.
- With a modest fee, we could reduce emissions 28% relative to 2005 levels by 2025.