Earth Equity News

Moving the U.S. Off Carbon with Less Pain, More Gain. Commentary by Carl Pope, YaleEnviro360, January 22, 2009. "How painful will a low carbon economy be -- and how painful will the transition be? Confronted with the urgent need to reduce our economy's greenhouse gas emissions 20 percent to 35 percent in the next 12 years, and 80 percent to 95 percent by mid-century, it is difficult to imagine this shift not requiring massive sacrifice... The amount of sacrifice involved in reducing greenhouse gas emissions can be vastly reduced by conscious action to access the cheapest, cleanest energy... What's needed is a national carbon cap, initially set at current emission levels, with the number of permits reduced rapidly to meet the U.S. goals mandated by global warming science. All permits would be auctioned and would be required for those who wanted to introduce carbon-based fuels into commerce. Only fossil fuel producers or importers would have to pay, keeping the system very simple and treating all carbon users fairly and equally. A 'release price' for permits -- hypothetically $30 per ton, indexed for inflation -- should be established. This release price represents a modest increase in the cost of fossil fuels -- 30 cents per gallon of gasoline. All revenues from the first $30 per ton would flow to the U.S. Treasury, and Congress would allocate them in two ways: to make low-income consumers whole for the increased costs of gasoline and electricity in their community, and to invest in climate change solutions with a focus on energy efficiency, renewable energy, and efforts to minimize the impacts of climate change at home and abroad... All auction revenues from carbon permit prices above $30 per ton should be immediately rebated to Americans. This retains the incentive for individuals to take actions to reduce their own personal use of carbon. It also protects the economy as a whole from a loss of income from higher fuel prices... The level of sacrifice we face will fall in direct proportion to how effectively we use carbon revenues to motivate and deliver the energy options that minimize cost to consumers and maximize environmental benefit." Carl Pope is the executive director of the Sierra Club.