Cap and trade has gotten a bad rap. It’s been vilified as a national energy tax, an elaborate Ponzi scheme, and a giveaway to corporate polluters.
While these attacks are wrong, they succeeded in shaping the political discourse around national climate and energy policy, which undoubtedly contributed to last week’s decision by Senate leaders to delay consideration of legislation that would limit greenhouse gas emissions.
This is unfortunate. We need a national policy to reduce emissions, and, as our new white paper shows, cap and trade is still the best, most cost-effective way of doing so. When lawmakers turn their attention back to this issue — as they must — they should make cap and trade a foundational element of the policy response to climate change.
A hot topic in environmental circles lately has been the impact plug-in electric vehicles (PEVs) will have on reducing greenhouse gas (GHG) emissions. Some are optimistic about PEVs’ emission reduction potential, while others are pessimistic. The truth is, not surprisingly, somewhere in between. In order to reduce emissions from the transportation sector, we must both move to low carbon fuels (including electricity, which has zero GHG emissions from the tailpipe) and reduce the carbon intensity of the electrical grid.
I posted previously on the controversy surrounding emails that were hacked from a computer server at the University of East Anglia’s (UEA) Climatic Research Unit (CRU) in the U.K. The emails revealed the private exchanges of several prominent climate scientists dealing with their science and their reactions to climate change deniers who requested access to their private computer files and intellectual property. The contents of the emails suggested to the untrained eye that the scientists had manipulated data and tried to undermine the scientific peer-review process. From my reading of the emails, I judged that nothing of the sort had happened. Since my last writing on the topic, five separate independent investigations (3 in the United Kingdom and 2 in the U.S.) of the matter have concluded that there was no mishandling of data or other wrongdoing beyond some foot-dragging in response to Freedom of Information requests by climate change deniers. The clear message from these investigations is that proper scientific methods were followed and the integrity of climate science remains solid as a rock.
The Midwest Governors Association (MGA) recently held a briefing in Washington for congressional and federal agency staff to highlight key regional developments in clean energy job creation. As the Senate prepares to take up energy legislation this summer, state government officials and representatives from business groups and environmental organizations in the Midwest described the progress they have made promoting renewable energy in order to create jobs, benefit the environment, and increase energy security.
Companies that make everything from computer chips to potato chips, search engines to jet engines, rubber tires to rubber soles, have stepped up this year to publicly support passage of comprehensive clean energy and climate change legislation. Why are companies calling for increased regulation? Isn’t that akin to a teenager arguing for an earlier curfew, or a second grader demanding an end to recess?
Actually, no. The days when businesses could be counted on to reflexively oppose all environmental regulations are over, and that’s a good thing. Nowhere is this shift more evident than in the case of climate change policy. American Business for Clean Energy tracks nearly 6,000 businesses, both large and small, that support energy and climate legislation. Dozens of companies, representing trillions of dollars in revenue, have signed on to letters and paid advertisements calling for prompt action on such legislation. These companies have determined that a clear and consistent national framework to begin reducing emissions is good for the economy and good for their industries. Our new brief, The Business Case for Climate Legislation, details the reasons why.