Proposed Carbon Tax Model Forecasts Job Increases; Hank Paulsen Calls Urgent Action Against Climate Change, Including a Carbon Tax

A new report models the effects of a carbon tax in the U.S. at the point of extraction, beginning in 2016 at a rate of $10 per metric ton of carbon dioxide and escalating at $10 per year until 2035. All proceeds from the carbon tax would enter into a “fee-and-dividend” (F&D) system that would refund money to all American households on a monthly basis, based on the number of people in the household. The report forecasts that by 2025, there would be: 2.1 million more jobs under the F&D carbon tax than in the baseline; 33% reduction in carbon dioxide emissions from baseline conditions; 13,000 premature deaths avoided because of improved air quality. The report was prepared for the Citizen’s Climate Lobby by consultants Regional Economic Models (REMI) and Synapse Energy Economics.
Models and research about carbon taxes may assume higher prominence as the U.S. business community becomes more and more open about discussing the possibility.

In an OpEd in the New York Times on June 21, Former U.S. Secretary of the Treasury, Hank Paulsen, a Republican, states that climate change is the challenge of our times and “The solution can be a fundamentally conservative one that will empower the marketplace to find the most efficient response. We can do this by putting a price on emissions of carbon dioxide — a carbon tax…. Putting a price on emissions will create incentives to develop new, cleaner energy technologies.“ Paulsen, along with former New York Mayor Michael Bloomberg and billionaire Tom Steyer, founded a business-oriented research initiative called Risky Business. Their high profile report is scheduled to be released on June 24, and will expand on the themes of Paulesen`s OpEd: the urgency of action and the risks of delay in fighting climate change.

LINKS:
The Economic, Climate, Fiscal, Power, and Demographic Impact of a National Fee-and-Dividend Carbon Tax is at http://citizensclimatelobby.org/wp-content/uploads/2014/06/REMI-carbon-tax-report-62141.pdf
“The Coming Climate Crash“ in New York Times OpEd (June 21) is at http://www.nytimes.com/2014/06/22/opinion/sunday/lessons-for-climate-change-in-the-2008-recession.html?ref=opinion
Risky Business website is at http://riskybusiness.org/

World Cities Filling the Gap with Climate Change Initiatives

A February 2014 report from C40, a leading climate action group that links megacities around the world, captures the importance of cities as climate actors. The report highlights the unique potential held by cities where innovations in efficiency and technology are more forthcoming, threats to economic and public wellbeing are often felt more immediately, and leaders have enough local power to respond effectively. The report indicates that mayors worldwide are already doing twice as much to build resilience and reduce emissions than they were in 2011. Nearly half of the 63 major cities surveyed used local green development funds to finance climate action commonly furnished through property, municipal, and local business taxation. Cities that reported addressing climate change as part of economic development commonly did so through the green manufacturing, green infrastructure, and clean technology sectors. The full report is available at:http://www.c40.org/blog_posts/CAM2.

The report was accompanied by the appointment of former mayor of New York and President of the C40 Board of Directors to the position of UN envoy for Cities and Climate Change. Michael Bloomberg pledged to harness the global mayoral power to raise political will and bring “concrete solutions” to the 2014 Climate Summit. Bloomberg, whose contributions in New York included rebuilding aging water mains and creating energy-efficient buildings, asserted that cities are “forging ahead” as progress at international levels stalls. The UN news release on the appointment is available at: http://www.un.org/apps/news/story.asp/story.asp?NewsID=47055&Cr=climate+change&Cr1#.UwaSNIXPxkW. The Guardian coverage including Bloomberg’s reaction is available at: http://www.theguardian.com/environment/2014/feb/05/michael-bloomberg-world-leaders-climate-deal.

According to a new report from the National Municipal Adaptation Project (NMAP) large Canadian cities are keeping pace with the global trend and have climate action plans. However, 65% of smaller communities have no plan in place despite the fact that many have already faced damage from flooding or extreme rainfall in the last ten years. The report is available at: http://www.localadaptation.ca/results-of-the-nmap-survey-of-local-governments.php. An online library of climate change adaptation policies from the Federation of Canadian Municipalities is available at: http://www.fcm.ca/home/programs/partners-for-climate-protection/program-resources/municipal-reports.htm.

The Natural Resources Defense Council (NRDC) has launched an initiative called “Urban Solutions” to help American cities become cleaner and more resilient by tackling food systems and clean energy, transportation, and storm-water infrastructure. Mayors from 10 major American cities also announced their participation in the City Energy Project, a partnership between the NRDC and the Institute for Market Transformation. The cities are expected to save a combined $1 billion in energy bills, cut 5 million to 7 million tons of annual carbon emissions, and create jobs in architecture, engineering, construction, and more. Read more about Urban Solutions at: http://switchboard.nrdc.org/blogs/spoticha/reconnecting_america_legacy co.html. The NRDC press release regarding the City Energy Project is available at: http://www.nrdc.org/media/2014/140129a.asp.
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New Research Initiatives Underway

1) In the U.S., a new research initiative led by hedge fund billionaire Tom Steyer, former U.S. Treasury secretary Henry Paulson, and outgoing mayor of New York Michael Bloomberg aims to calculate the true financial cost of climate change. In a report expected in summer 2014, “Risky Business” will “combine existing data on the current and potential impacts of climate change with original research to reveal the most vulnerable sectors and assist with preparation”. According to Bloomberg Markets Magazine, the team also hopes to show that the eventual consequences of “business as usual” will outweigh its short-term benefits. See http://riskybusiness.org/about or http://www.bloomberg.com/news/2013-10-01/climate-change-rescue-in-u-s-makes-steyer-converge-with-paulson.html  

2) Launched on September 24, the new Global Commission on the Economy and Climate, co-chaired by Nicholas Stern, will conduct a “year-long, $9 million study to analyze the economic costs and benefits of acting against climate change”. The study will use macroeconomic modeling techniques to analyze possible outcomes, factoring in potential policy mechanisms, economic growth, investment, employment, poverty reduction, income distribution, and the need for improved health, energy, and food security. The commission hopes to uncover pathways to a resilient, resource-efficient, low-carbon economy. See http://newclimateeconomy.net/

3) Wilfred Laurier University in Waterloo, Ontario will launch a Centre for Sustainable Food Systems on November 14, to bring together researchers from the departments of Geography and Environmental Studies, Psychology, Biology, Global Studies, Religion and Culture as well as the School of Business and Economics. From their website at: https://www.wlu.ca/homepage.php?grp_id=13686: “Our vision is to conduct research that is both grounded in practice and theoretically informed, and to disseminate this co-generated knowledge through local, national and global networks to advance opportunities for and educate about more sustainable food systems.”