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A Group of Big Businesses is Backing a Carbon Tax. Could It Be a Solution to Climate Change?

The long list of big companies backing a carbon tax as a solution to climate change grew this week with financial giant J.P. Morgan Chase & Co. endorsing a legislative plan billed as a centrist approach to reducing emissions.

The announcement comes as the Climate Leadership Council (CLC), the organization behind the proposal, which was first released in 2017, redoubles efforts to promote the plan before an expected introduction in Congress as the conversation around various climate solutions heats up in Washington.

The CLC announced new backers—including former Energy Secretary Ernest Moniz and former UN climate chief Christiana Figueres—and released internal poll numbers showing bipartisan voter support for the plan. Supporters now include a broad coalition of companies, from oil giants like ExxonMobil to tech behemoths like Microsoft, major environmental groups like Conservation International, and a range of economists and political leaders.

“The markets can and will do much to address climate change,” David Solomon, CEO of Goldman Sachs, a founding member of the CLC, told TIME in an emailed statement. “But given the magnitude and urgency of this challenge, governments must put a price on the cost of carbon.”

The thinking behind the plan is straight forward. Economists have long argued that a carbon tax, which makes companies pay for what they pollute and gives them an incentive to stem carbon emissions, is the most efficient way to reduce such emissions. But carbon tax proposals have been met with opposition in the past from across the political spectrum, including from some Democrats, in large part because they increase energy costs. The CLC proposal would give the money collected by the tax back to taxpayers in the form of a quarterly dividend, an effort to make it more politically palatable.

On Feb. 13, the CLC provided additional details about the plan, including introducing a new mechanism that would rapidly increase the price on carbon if targets are not met. Backers say the plan will cut U.S. emissions in half by 2035. “We think it has a compelling economic logic,” says Janet Yellen, the former chair of the Federal Reserve and a backer of the plan, in an interview.

But despite the growing coalition, actually passing the plan remains a challenging uphill battle. While more and more Republicans have stopped denying the science of climate change, many continue to insist that they would never support anything resembling a carbon tax. Meanwhile, many leading Democrats, including presidential candidate Senator Bernie Sanders of Vermont, have downplayed the role a carbon tax might play in future climate legislation. Many Democrats argue that the time has passed for such a market-driven approach to climate change, arguing that they are too little, too late and that a corporate-backed plan shouldn’t be trusted.

Still, big corporations increasingly see a carbon tax—especially a proposal like the CLC plan—as the simplest solution to a thorny problem. With clear science, activists in the streets and voters experiencing extreme weather events in their own backyards, business leaders see new climate rules as all but an inevitability, if not at the U.S. federal level then in states or other countries where they have operations.

The CLC proposal offers a business-friendly approach: nixing many existing climate regulations, a “border carbon adjustment” that would create a fee on imports from countries without a carbon price, and a dividend system that pays out the revenue collected by the carbon tax back to taxpayers. “If we do one without the other,” says Shailesh Jejurikar, CEO of Procter & Gamble’s Fabric & Home Care division, “it doesn’t work.”

Still, even as more than a dozen Fortune 500 firms support the legislation, many other businesses and influential business groups continue to either oppose a carbon tax or haven’t taken a position at all. That’s particularly true of the fossil fuel industry’s trade groups like the American Petroleum Institute, which officially has no position. Even though major oil companies like ExxonMobil and Shell have joined the CLC initiative, independent oil companies, oil refiners and other related companies remain largely opposed.

One of the biggest challenges to this measure—or any carbon tax for that matter—is the growing interest in other approaches to climate legislation. Republicans this week pushed legislation to plant trees and expand tax incentives for capturing carbon, measures that wouldn’t match the scale of the challenge but allow Republicans to offer a different message on the issue.

Earlier this month, Representative David McKinley, a Republican from West Virginia, and Kurt Schrader, an Oregon Democrat, called for legislation that would lead to an 80% reduction in emissions from the power sector by 2050 using a combination of regulation and funding for innovation and infrastructure. And more than 30 Democratic senators introduced a bill to require the Environmental Protection Agency to come up with a plan for the U.S. to eliminate its carbon footprint by 2050. “This is the quickest way we can jumpstart government-wide climate action,” Senator Tom Carper of Delaware, who introduced the legislation, said on the Senate floor.

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None of these measures are likely to become law anytime soon, and any legislative approach to addressing climate change will involve intense debate on Capitol Hill.

Even some backers of the carefully crafted CLC plan acknowledge it’s not likely to pass in its current form. “Inevitably, Congress will have some of its own ideas in terms of the implementation,” Moniz, who endorsed the CLC proposal this week, tells TIME.“ “I would welcome seeing that negotiation start in earnest.” Indeed, even having a discussion in Congress indicates a new climate for climate in Washington.

By Justin Worland February 13, 2020

Source: A Group of Big Businesses is Backing a Carbon Tax. Could It Be a Solution to Climate Change?

A revenue neutral carbon tax would automatically encourage consumers and producers to shift toward energy sources that emit less carbon. Carbon taxes are economically efficient because they make people pay for the costs they create. And a revenue neutral carbon tax would keep the government from using new revenue to subsidize other programs. For more information, visit the PolicyEd page here: https://www.policyed.org/intellection…. Additional resources: Read “Why We Support a Revenue-Neutral Carbon Tax” by George P. Shultz, Gary S. Becker, available here: https://hvr.co/2uMzTTl Read why enacting a carbon tax would free up private firms to find the most efficient ways to cut emissions in “A Conservative Answer to Climate Change” by George P. Shultz and James A. Baker III, available here: https://on.wsj.com/2loUAhM Read “There Is One Climate Solution That’s Best For The Environment – And For Business” by George P. Shultz and Lawrence H. Summers, available here: https://wapo.st/2JRoLJv Watch as George P. Shultz, James A. Baker III, and Henry Paulson discuss “Is There Deal Space for Carbon Pricing In 2017?” Available here: https://hvr.co/2NHPF90 Listen as George Shultz joins The World Today to explain why he supports a carbon tax, available here: https://ab.co/2ObRBYN John Cochrane discusses George P. Shultz and James A. Baker III oped “A Conservative Answer to Climate Change.” Availabler here: https://bit.ly/2LMPdpF Read “Let the Carbon-Dividends Debate Begin” by George P. Shultz and Ted Halstead, available here: https://bit.ly/2O95UNH Visit https://www.policyed.org/ to learn more. – Subscribe to PolicyEd’s YouTube channel: http://bit.ly/PolicyEdSub – Follow PolicyEd on Twitter: http://bit.ly/PolicyEdTwit – Follow PolicyEd on Instagram: http://bit.ly/PolicyEdInsta

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This Bill Gates-Backed Solar Startup Just Had a Breakthrough That Could Cut the World’s Carbon Emissions by 20 Percent​

Los Angeles-based startup Heliogen, backed by Bill Gates and AOL founder Steve Case just announced that it has found a way to replace fossil fuels in industrial plants. Those plants produce more than 20 percent of the world’s carbon emissions, but Heliogen’s new concentrated solar technology may change that. It can create heat over 1,000 degrees Celsius, potentially replacing much of the fossil fuels these plants currently use.

You wouldn’t think that making something really, really, really hot would be the best way to fight climate change. But it is, because the production of steel, cement, and petrochemicals among others requires heating them to very high temperatures. Up till now, the only way to achieve this was with fossil fuels such as coal, gas, and oil.

For decades, the solar industry has been trying to produce the high temperatures needed for such manufacturing with concentrated solar–basically a very much larger version of the experiment you probably did as a child, starting a fire using sunlight and a magnifying glass. Concentrated solar companies have traditionally used hundreds of mirrors to reflect the sun’s beams onto a single spot.

It requires a great deal of precision and engineering skill to determine the precise angle of each mirror in order to point the beam at exactly the right spot, and then to keep changing the mirror’s position as the sun moves across the sky. Despite its best efforts, the concentrated solar industry was never able to create temperatures higher than 600 degrees Celsius, which is certainly very hot, but not hot enough for things like steel or cement manufacture.

Heliogen’s breakthrough is that, rather than trying to predict precisely where the sun’s beams will land, it uses cameras to observe where sunbeams are going and make minute adjustments several times per second in order to keep the mirrors pointed in precisely the right direction.

Using this approach, Heliogen says it’s been able to achieve temperatures of more than 1,000 Celsius. And that was on its first try. The company believes it can produce temperatures above 1,500 Celsius–enough to split water molecules and produce hydrogen fuel. That could solve hydrogen fuel’s biggest problem, which is that the energy needed to produce it negates any environmental gains from using it.

Cement alone contributes 8 percent of greenhouse gases

“I don’t know how many people will understand how significant breaking 1,000 C is,” Heliogen founder Bill Gross told GeekWire. Gross is a serial entrepreneur who also founded the tech incubator Idealab. [Disclosure: I am also a GeekWire contributor.] Here’s why Gross said getting above 1,000 using solar is such a big deal: “There’s all these things that happen above 1,000 C. Cement is made above 1,000 C. Steel is made above 1,000 C.

Hydrogen is made above 1,000 C.” But, he added, even if the lay person isn’t particularly excited by what Heliogen has achieved, “In the industry, it’s going to be really, really spectacular.” He added that cement production alone accounts for 8 percent of global CO2 emissions so a switch to concentrated solar in that industry alone would have a huge impact.

Gross said he was inspired to start Heliogen after attending Bill Gates’ 2010 TEDx talk in Long Beach, California, “Innovating to zero!” In the talk, Gates said that if he could be granted a single wish for the next 50 years, it would be for someone to invent a technology that would lower the cost of energy and eliminate CO2 emissions at the same time. Afterward, Gross went up to Gates and expressed his interest in working on such a technology.

Gates invited Gross to Seattle for a brainstorming session during which Gates and Gross bounced around ideas with other Gates Foundation leaders. “We talked about all the different ways that this could happen, and that was the beginning of thinking through the different technical challenges and ways to pull this off,” Gross said. “And he’s just been fantastic. Of course he’s going around the world telling everybody about this.”

Heliogen’s technological breakthrough depends in part on the growing availability and affordability of GPU, or graphic processing units, something that gamers need to play today’s graphically intense games. So if Heliogen succeeds in its mission to replace fossil fuels in high-heat manufacturing and eliminate a signficant portion of carbon emissions? You may have kids playing Fortnite to thank.

By Minda ZetlinCo-author, The Geek Gap

Source: This Bill Gates-Backed Solar Startup Just Had a Breakthrough That Could Cut the World’s Carbon Emissions by 20 Percent​

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… , With Momentum Toward Commercial Hydrogen Fuel Creation Heliogen – Replacing Fuels with Sunlight https://www.businesswire.com/news/hom…

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