Carbon Pricing and Chocolate Ice Cream

This Week’s Reason for Hope

Recent Pew Center study shows promising views on climate policy, even before the climate events of the summer

Millennials and Gen Z more likely to prioritize climate action than Boomers

Differences are more pronounced among younger and older Republicans

Sources

https://www.pewresearch.org/fact-tank/2021/05/26/key-findings-how-americans-attitudes-about-climate-change-differ-by-generation-party-and-other-factors/

Climate Targets

We need to limit warming to 1.5 degrees avoids tipping point

CO2 cuts needed to stay within 1.5 degrees Celsius

• 45% or more by 2030
• Net zero by 2050 or earlier

Sufficiency of current climate plans

• Almost sufficient – U.K., many African nations
• Insufficient – E.U., Japan, U.S.
• Highly insufficient – China, Australia

Australia has taken little to no action on climate under PM Scott Morrison

Sources

Climate change: Have countries kept their promises? - BBC News

Countries | Climate Action Tracker

Should Scott Morrison go to Cop26 in Glasgow? Not if he’s planning a climate con job | Bill Hare | The Guardian

Examples of Carbon Pricing

Canada - Carbon tax with a rebate

Passed in 2018 by Trudeau government

Current CO2 price - 40 CAD / ton

Moving to $50 next year then $15 / yr up to 170 CAD / ton in 2030

Rebate

• 90% of funds are distributed back to households
• Majority of families come out ahead
• Family of four gets between $600-$1000 (depending on province)

 E.U. – Cap and trade

Current CO2 price - 62.45 Euros / ton

Border adjustment passed this year

• Acts like a tariff
• Applies to CO2 intensive materials like steel, aluminum and fertilizer

Progress to date

• Cut emissions 24% by 2019
• Targeting 55% by 2030

U.S. Situation

No national price

States have shown leadership

Regional Greenhouse Gas Initiative – 11 Eastern states  (applies to power sector)

California

• Launched in 2013
• First multi-sector cap and trade program

Washington

• 2nd state with multi-sector cap and trade program

More than a quarter of the U.S. population lives in a state with carbon pricing. These states represent a third of the U.S. GDP.

Sources

Market-Based State Policy | Center for Climate and Energy Solutions (c2es.org)

Canadian Carbon Prices & Rebates (Updated 2021) (energyhub.org)

Climate Action Incentive Payment Amounts for 2021 - Canada.ca

Most Canadian households to get more in rebates than paid in carbon tax: PBO | Globalnews.ca

Canada's Supreme Court rules in favour of national carbon tax - BBC News

What Countries Have A Carbon Tax? | Earth.Org - Past | Present | Future

EU unveils sweeping climate change plan - BBC News

Carbon Tax vs. Cap-and-Trade: What’s a Better Policy to Cut Emissions? | World Resources Institute (wri.org)

Climate change: Have countries kept their promises? - BBC News