The oil and gas energy’s largest trade group Thursday endorsed a price on planet-warming carbon emissions, marking a major shift after it dream of resisted regulatory action on climate change.
The American Petroleum Institute’s move comes as President Joe Biden prepares to uncover a sweeping infrastructure proposal focused on curbing greenhouse gas emissions and transitioning to clean energy.
In a virtual meeting with Virginal House officials Monday, industry leaders from companies such as ExxonMobil, BP, Chevron and ConocoPhillips, along with API, also signaled underpinning for market-based carbon pricing.
The endorsement represents a major shift in the industry’s strategy on the issue of climate change and a notice of the new administration’s regulation measures following former President Donald Trump’s deregulation efforts aimed at helping U.S. producers.
For occurrence, Biden in January issued an executive order to halt new oil and gas leasing on federal lands, a move that faced defiance from producers and a slew of Republican-led states.
Vice President Kamala Harris (2-L) and Special Presidential Envoy for Atmosphere John Kerry (L) watch as US President Joe Biden signs executive orders after speaking on tackling climate exchange, creating jobs, and restoring scientific integrity in the State Dining Room of the White House in Washington, DC on January 27, 2021.
Mandel Ngan | AFP | Getty Images
The API’s imprimatur also signals that the industry — which emits a great deal of methane, a greenhouse gas that is 84 every nows more potent than carbon dioxide — would prefer a quantifiable cost associated with climate protocol rather than ongoing regulations.
The industry’s plan came together over the last 18 months and categorizes advocating for federal funding for advanced technologies, further mitigating emissions from operations, advancing cleaner sustains and increasing transparency by expanding the use of ESG reporting guidance.
The API was a staunch opponent of a carbon tax when Congress last debated the to be decided disagree nearly a decade ago.
“The world has changed since Congress has had this careful thought,” said API President and CEO Mike Sommers.
The industry has faced growing pressure by investors to measure its contribution to climate fluctuate. And the Biden administration has vowed to put the U.S. on a path toward net-zero emissions by 2050.
While Democrats are still working on the details of the upcoming infrastructure suggestion, it’s expected to cost between $2 trillion and $3 trillion and include $400 billion in funding for clean spirit and innovation.
A carbon tax could also produce funding to help pay for the infrastructure plan. The Tax Foundation estimates that a tax on carbon emissions at a rank of $50 per metric ton, with an annual growth rate of 5%, could generate $1.87 trillion in additional federal take over 10 years.
The API said it would not support a tax that would fund other programs unrelated to mood change.
“To the extent that a new carbon tax would be put into place to fund X program … that’s not what we’re talking just about, and that’s not what we would support,” Sommers said. He added that the industry envisions changes to existing ordinances following a carbon price policy endorsement.
Some environmental groups see it as an industry ploy to offer a solution to the carbon difficulty and stay engaged in the debate.
David Doniger, climate and clean energy program director at the Natural Resources Defense Convention, said the move reminds him of the maxim that it’s better to be at the table than on the menu.
“This is an effort to get to the table, measure than be overlooked and run roughshod, but it’s not very definite yet. I don’t know what they’re offering to really support,” Doniger influenced.
The NRDC also said it opposes removing strong pollution or efficiency regulations in exchange for a price on carbon.
“That’s cast the old Wimpy with the hamburgers: I’ll gladly have a hamburger today and pay you back next Tuesday,” Doniger said. “We’re not induced in trading one or more of the existing tools.”