Hawaii delegate demonstrates climate leadership on the hill

Climate protection advocates have a lot to celebrate with the news that US MP Kai Kahele co-funded HR 2307 – the Energy Innovation and Carbon Dividend Act. His sponsorship will help pave the way for US carbon pricing legislation to be passed

This bill provides for a gradually increasing price of carbon, a dividend that will benefit US households, and an adjustment to the carbon limit to protect local industries from lower-cost, high-carbon products coming from non-carbon-priced countries USA imported.

The gradual rise in price gives businesses predictability to plan around for. At the same time, the proceeds are used to finance dividend payments to households in order to mitigate the expected cost increases for high-carbon products.

The rising carbon fees will provide an incentive for businesses and individuals to look for more affordable, lower-carbon options. This strategy provides the ability and flexibility to quickly move away from fossil fuels and other carbon-rich products in an orderly and socially just manner.

A price for carbon pollution is long overdue for the US We are one of two countries with developed economies that do not have a carbon price. (Australia is the other.) Non-carbon-priced countries face marginal taxes on carbon-rich products exported to carbon-priced countries.

The European Union has already announced plans to introduce a carbon limit, which has raised concerns among trading partners like Russia. The US can protect its trade while contributing to meaningful climate action by introducing a carbon price.

What’s at stake

At stake is our planet’s ability to sustain life. The climate crisis is our existential threat. We are reminded almost daily of the danger we are exposed to if we do not act. News of floods, catastrophic floods, life-threatening heat, forest fires and other climate-related disasters from around the world flood our airwaves.

We no longer have to listen to the terrible climate predictions made by scientists, because today we are unfortunately experiencing the consequences of climate change. It will get worse unless concerted global efforts are made to reduce global warming emissions. We can still leave a world for our children and future generations to thrive in, but we must act with seriousness and urgency.

There is hope

Fortunately we wake up. Governments and large corporations around the world are committed to radically reducing emissions and achieving “net zero”. The introduction of renewable energy solutions and zero-emission transportation is accelerating.

Electricity suppliers are increasing the generation of electricity from the sun and wind. The car manufacturers have announced target dates for the production stop of gasoline cars and are expanding their range of electric vehicles.

Governments have introduced market-based solutions (such as a carbon price). There is hope, but we need to take more aggressive and timely action to adequately address global warming. HR 2307 offers us such a measure.

Carbon pricing is effective and popular

Several economic studies (citizensclimatelobby.org/carbon-pricing-studies/) show that setting a price for CO2 is the most efficient method of reducing CO2 emissions and that returning income to households is the most progressive policy.

Notably, over 3,500 economists, former Federal Reserve chairmen, prominent religious organizations, the US Chamber of Commerce and the Business Roundtable, and many governments support carbon pricing. Its effectiveness in changing individual and macroeconomic behavior is fueling growing support for politics.

It is important that carbon pricing complements other strategies for reducing emissions, such as energy efficiency standards and the development of carbon-free technologies.

It works?

We can use global examples to understand the effectiveness of this policy. Sweden, a country that introduced a carbon price in 1991 and has the highest rate in the world, has reduced its emissions by 25% by 2000 while its economy is outperforming the European average. (ecofiscal.ca/2018/04/11/carbon-pricing-works-in-sweden/).

A price for CO2 pollution is long overdue for the US

British Columbia is another example. It introduced a carbon price of CAD 10 per tonne of CO2 in 2008. In 2014 the price was CAD 30 per tonne of CO2.

At the same time, BC’s economy grew about 12% (better than the rest of the nation) and emissions fell about 10% (twice the national average).

Climate leadership in Congress

We really appreciate the fact that Rep. Kahele is making climate protection a priority. His advocacy for legislation to protect our marine environment, his firsthand experience of the effects of climate change on the economically disadvantaged, particularly in Hawaii and the Pacific, and now national climate legislation bode well for our efforts to address the climate crisis.

Now is the time for serious climate action. With the growing support for carbon pricing in Congress, including Kahele’s sponsorship of HR 2307, Hawaii Sen.’s adoption of the Save Our Future Act (a bill on carbon pricing) which the citizen’s climate lobby is actively promoting to their senators (cclusa.org/senate), the US could very well introduce a carbon fee that would bring about a significant reduction in carbon emissions in a fair, efficient and effective manner.

Therefore, for the good of the planet and future generations, we encourage Sen. Mazie Hirono to join Sen. Schatz in supporting the Save our Futures Act and Rep. Ed Case to join Rep. Kahele in supporting HR 2307.