Letter: The carbon price, highs and lows
Published 6:00 am Tuesday, November 2, 2021
The Senate Finance Committee chaired by Ron Wyden of Oregon is working on several climate change initiatives in the Reconciliation Bill, even though Sen. Joe Manchin of West Virginia doesn’t like it. He doesn’t like it despite the devastating floods and droughts suffered by his constituents that are causing emergency declarations. He also doesn’t like it because he has a blind trust for a coal trading company that produces dividends. In addition, he receives donations from the coal and gas industry — the most of any Democrat.
Since Sen. Manchin seems to be against any climate change initiatives, the negotiators are trying to figure out which he dislikes least. He seems to be seriously upset with the program to encourage electrical utilities to reduce their use of fossil fuels called the Clean Electricity Payment Program. Perhaps less so with a carbon price, and he doesn’t seem to have mentioned tax credits tied to investment in renewable energy. Significantly, a company called AEP is running three coal fired electricity plants in West Virginia, and that company has highlighted the importance of receiving those tax credits to decarbonize.
Despite all of the politics, a carbon price is in the running because it is cheap, effective, transformative and can help pay for other programs. Getting rid of carbon is a big transition, but because a carbon price affects all uses of fossil fuel, it helps inputs, products and markets to transition simultaneously. You can help too by asking President Joe Biden to support a carbon price at whitehouse.gov/contact or citizensclimatelobby.org/white-house.
Brenda Pace
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