America to consider implementing carbon prices?

Posted: 25 Mar 2021

Recently White House Domestic Climate Advisor Gina McCarthy held a virtual meeting to discuss shared priorities with leaders of 10 oil companies and other industry trade groups. Much of the talk centered on various ways government and industry could partner to help advance low carbon technology.

Many existing US policies that affect power plants, car emissions, and oil and gas production already include calculating the social cost of carbon. While the Obama administration placed this at $50 per tonne, the Biden administration has estimated that figure at $51, with some speculating it could rise to $125.  

If appropriately designed, a carbon price would create incentives for companies to offer consumers lower-carbon options while providing transparency for potential investors. Read more here.

The American Petroleum Institute (API) has just reversed its long-held opposition to putting a price on carbon emissions, endorsing the approach among other measures.  More here.

Meanwhile, Canada's national carbon tax will remain intact after the country's Supreme Court ruled in favour of its legality.  See here.