Solving the Climate Crisis: Carbon Pricing 101

Policy and Legislation

Dr. Linda Dismore (Diz) Swift

© http://PriceonCarbon.org

Policy and Legislative Actions

GlobalMulti-national

NationalRegional

State and MegaCity

© http://PriceonCarbon.org

National – State – Regional - MegaCity

Figure from World Bank report, 2014Update 2015

© http://PriceonCarbon.org

1990 1995 2000 2005 2010 2015

12%

10%

8%

6%

4%

2%

0%

Carbon Pricing Schemes

Figure from World Bank Advance Brief for 2015

Carbon Pricing SchemesShare of Global Carbon Emissions Covered

Includes 38 carbon pricing schemes across the globe at national, regional, and mega-city scale. The largest current contributor is the EU’s ETS.

Does not include China’s 2017 cap and trade – which will account for an additional 21% of global emissions

U.S. Congress Bill History

© http://PriceonCarbon.org

112

th

11-1

211

3th

13-1

411

4th

15-1

6

110

th

07-0

811

1th

09-1

0

106

th

99-0

010

7th

01-0

110

8th

03-0

410

9th

05-0

6

101

st

89-9

010

2nd

91-9

210

3rd

93-9

410

4th

95-9

610

5th

97-9

8

9876543210

Congress year

1st IP

CC A

sses

smen

t

4th IP

CC A

sses

smen

t

5th IP

CC A

sses

smen

t

Num

ber o

f Bill

s Pr

opos

ed

Carbon Tax/FeeCap and Trade

114th

15-16111

th09-

10 112th

11-12 113

th13-

14108th

03-04 109

th05-

06 110th

07-08

U.S. Congress Bill History

© http://PriceonCarbon.org Congress year

Num

ber o

f Bill

s Pr

opos

ed

Carbon Tax/FeeCap and Trade

Bi-partisan Attempt Senate:Lieberman [D-CT] McCain [R-AZ]

Four bills (cap and trade)

House: Gilchrist [R-MD-1]

Three bills (cap and trade)

8

7

6

5

4

3

2

1

0

114th

15-16111

th09-

10 112th

11-12 113

th13-

14108th

03-04 109

th05-

06 110th

07-08

U.S. Congress Bill History

© http://PriceonCarbon.org Congress year

Num

ber o

f Bill

s Pr

opos

ed

Carbon Tax/FeeCap and Trade

8

7

6

5

4

3

2

1

0

Eleven bills + nine related

H.R. 2454Waxman [D-CA-30), Markey [D-MA-7]

• Cap and Trade• Passed House• Significant compromises

111th Congress

114th

15-16111

th09-

10 112th

11-12 113

th13-

14108th

03-04 109

th05-

06 110th

07-08

U.S. Congress Bill History

© http://PriceonCarbon.org Congress year

Num

ber o

f Bill

s Pr

opos

ed

Carbon Tax/FeeCap and Trade

8

7

6

5

4

3

2

1

0

Carbon Tax Dominates

114th

15-16111

th09-

10 112th

11-12 113

th13-

14108th

03-04 109

th05-

06 110th

07-08

U.S. Congress Bill History

© http://PriceonCarbon.org Congress year

Num

ber o

f Bill

s Pr

opos

ed

Carbon Tax/FeeCap and Trade

8

7

6

5

4

3

2

1

0

Opposition – mostly “riders”

114th Congress – Slender Hope

Not much differenceCarbon TaxRep. Huffman, Jared [D-CA-2]Rep. Delaney, John K. [D-MD-6] Aid in transition, reduce corp. income taxSen. Whitehouse, Sheldon [D-RI] Reduce corp. income tax, tax credits to workers, etc.Rep. McDermott, Jim [D-WA-7] Dividends to taxpayers

Cap and TradeRep. Van Hollen, Chris [D-MD-8] Dividends in equal amounts to residents with SSN

© http://PriceonCarbon.org

The Best Chance is at State Level

Figure from World Bank report, 2014Updated 2015

ALBERTA MANITOBA

ONTARIO

QUEBEC

RGGI

BRITISHCOLUMBIA

WASHINGTONOREGON

CALIFORNIA

MEXICO

© http://PriceonCarbon.org

The Best Chance is at State Level

Regional Greenhouse Gas Initiative (RGGI)• Cap and trade• Nine NE US states

© http://PriceonCarbon.org

The Best Chance is at State Level

Cap and TradeCombined trading

© http://PriceonCarbon.org

The Best Chance is at State Level

British Columbia• Carbon tax ($28 US)• Revenue neutral• Emissions reduced

© http://PriceonCarbon.org

The Best Chance is at State Level

States Considering• Washington• Oregon• New York• Rhode Island• Massachusetts• Vermont

RGGI

SOLVING THE CLIMATE CRISIS:

CARBON PRICING 101A special thank you to our sponsors: