Exxon Mobil, BP, Royal Dutch Shell and Total are major oil companies that are supporting the Climate Leadership Council’s new carbon tax proposal.
The conservative case for carbon dividends
The “conservative climate solution” would tax greenhouse gas emissions in an attempt to fight global warming. The plan, which was announced in February, would set an initial tax of $40 per ton of carbon dioxide produced, adding 36 cents to the cost of each gallon of gasoline sold. The Climate Leadership Council said that the tax would steadily increase over time, sending a clear anti-carbon message to businesses and consumers.
Proceeds from the tax would be returned to Americans on an equal, monthly basis. In the first year, based upon the $40 initial tax, each family of four would receive approximately $2,000. As the tax increases over time, so does the return, incentivising the protection of our environment.
This carbon dividend plan would discourage fossil fuel emissions while simultaneously providing disposable income for many families. It would also positively impact low-income families who are struggling to make ends meet. The proposal makes it clear that the more someone pollutes, the more they pay. The less they pollute, the more profit they make.
The plan would also remove many outdated regulations, giving companies the opportunity to reduce emissions in the most efficient way.
An unusual group of supporters
The Climate Leadership Council’s founding members come from varying places on the political spectrum, bringing Republicans, Democrats and independents together.
Exxon is just one of many corporate founding members, and CEO Darren Woods said that Exxon supports the proposal because “it aligns closely with our longstanding principles.”
Along with the four aforementioned oil companies, GM, Johnson & Johnson, P&G, PepsiCo, Santander, Schneider Electric and Unilever are corporate founding members of the Climate Leadership Council.
Unilever CEO Paul Polman explained his company’s interest in the project, saying that this proposal “has support from people across the political spectrum and the potential to bring together policy makers to engage in a bipartisan solution.”
Individual supporters also come from vastly different walks of life, with the list including physicist Stephen Hawking and former New York City Mayor Michael Bloomberg.
Takeaway
Though it’s strange to see oil companies supporting their own taxation, the proposed climate solution combines liberal climate preservation goals with the conservative concept of a free market with a limited government.
A bipartisan climate solution is exactly what the United States needs, especially after withdrawing from the Paris climate agreement. Luckily, the Climate Leadership Council has managed to garner support from many facets of our political spectrum.
Hopefully this proposal will launch the U.S. into a greener, more environmentally conscious era.
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