The four pillars of the plan
I. A Gradually Rising Carbon Fee II. Carbon Dividends For All Americans III. Significant Regulatory Simplification IV. Border Carbon Adjustment
Applying the carbon dividends framework to other countries...
Why now...Wall Street is trying to catch up on climate change FT By Gillian Tett
> The plan’s backers cite three reasons why the concept might gain traction with Republicans. One is that even Republican voters are telling pollsters they are getting concerned about the environment. > A second factor is that the US military wants to see action. “Climate change is an increasingly destabilising force in the world, putting at risk our economic and national security interests,” says Jim Mattis, Mr Trump’s former defense secretary. He sees the carbon dividends plan as “a great place to start” the policy response. > Third, the council is now deliberately presenting these ideas as an antidote to the left’s Green New Deal ideas, using Trump-friendly rhetoric. Most notably, it wants to use a $40-a-tonne carbon fee (which subsequently rises by 5 per cent above inflation each year) to create market incentives for businesses to slash emissions — and claims this will remove the need for heavy-handed environmental regulations. > It also argues that this fee (or “tax” or “dividend”) will be recycled to households, leaving them on average $2,000 better off each year. Meanwhile, carbon adjustment mechanisms will curb imports from “dirty” companies in places such as China. This combination of “regulatory relief and border carbon adjustments” creates “a powerful competitive and investment strategy”, argues Mr Shultz. Or as one backer says: “We will call it a Trump tariff if this helps!