Knowing the Primary Purpose of the Climate Leadership Council
There’s a broad coalition of industries and conservative groups that were united as the Climate Leadership Council (CLC) released carbon pricing proposals which is expected for it to be released. The proposal actually was never introduced in Congress before and remained to be seen who is going to be its main sponsors. The release of the plan is actually a significant news and that it is considered to be the first industry-backed carbon pricing proposal of the year 2019.
To be able to assess on the CLC proposal, it is essential to consider understanding the composition, intentions and inception of the CLC. Also, CLC is an international policy institute that actually pushes the federal price for carbon, which in fact is made for appealing industry groups and conservative policymakers. This in fact is a coalition on corporations of which includes the gas and oil companies, prominent individuals and non-governmental organizations who came together in the summer of 2017 and also have goals to advance a nationwide fees on carbon pollution.
Below are key components for such proposal.
Rising Carbon Fee Gradually
On the bill, it imposes a $40 per ton price on carbon dioxide, which actually increases for about 5% for every year. All revenues are generated in fact are rebated for consumers on an equal and on a quarterly basis.
When the emission reductions will not be on track, the Emission Assurance Mechanism triggers large emission reductions in taking place. According to the US Department of the Treasury, most American families are going to get more in carbon dividends than paying in increased energy costs.
As an exchange on the fee, there are federal regulations on carbon emissions from refineries, power plants and other industrial facilities that are going to be lifted. A regulatory rollback is in fact meant to provide assurance for support from businesses and from conversative members of Congress.
Border Carbon Adjustments
Just like most carbon pricing proposal, it levies a border carbon adjustment fee for energies which carbon-intensive imports on other countries would face based with the carbon content of the own product.
An ideal on how polluters lobby with tax themselves will always be raising questions. Environmental justice groups may have issues to back any legislation of which oil and gas companies put. If ever the Climate Leadership Council continues to engage groups, perception and political dynamics for the proposal could in fact change.
Now, the industry is coming around to climate action and policy on the current rate of warming, which is actually more than 10% on the annual GDP can be wiped out at the end of the century.