Wednesday, January 7, 2015

The Prospects of Putting a Price on Carbon

Some developments have occurred in 2014 that lend credence to the possibility of carbon tax or some form of carbon pricing legislation. Previously, despite the overwhelming evidence that this is a powerful way of advancing climate action, it has been a political hot potato.

However, in 2014 a Ceres group by the name of BICEP, called for more aggressive policies including putting a price on carbon. This initiative was supported by some mainstream companies including General Mills, Kellogg’s, and Nestle.

Institutional investors are also calling for a price on carbon. Over 1,000 companies, and 70 countries have signed the World Bank Price on Carbon.

Even the former President of Goldman Sax, Republican Hank Paulson, supports putting a price on carbon.

California has been a longtime participant in a cap and trade scheme. The state has demonstrated that you can simultaneously cut emissions and grow your economy. California has cut emissions by 4 percent while growing by 2 percent.

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