Climate Change Policy Options
As legislative sessions are open in many states, we are offering a brief overview of some of the environmental policies that may be on the table. None of these solutions is one-size-fits-all — we will have to implement a combination of policies in order to combat climate change. (If you need more background on climate change and fossil fuels, you can read our FAQ here.) Further, different policies can be implemented at different levels of government — federal, state, local, and even global. To the extent that we have provided examples, they are for reference only; MWEG is not necessarily endorsing them.
Natural Climate Solutions
Forests, wetlands, and other natural spaces store carbon dioxide. Conserving wildlands and using regenerative practices in farming takes advantage of the Earth’s natural ability to help regulate the climate and builds resiliency. According to one study, nature-based solutions can provide one-third of the emission reductions required to keep global temperature increase under 2° C by 2030. One example of this policy is President Biden’s America the Beautiful Initiative, which aims to conserve 30% of lands and waters by 2030.
Carbon Pricing
Pricing carbon incentivizes businesses and consumers to reduce emissions in the ways that are most feasible. A carbon tax consists of a fee to discourage high-carbon activities, which may be implemented for fossil fuel companies or at the consumer level. The revenue is returned to consumers directly or distributed to vulnerable communities experiencing impacts of climate change. More details can be found here. Around 40 countries have implemented carbon pricing measures.
Carbon Markets
Markets are related to carbon pricing. In cases where emissions cannot be eliminated, they can be mitigated by purchasing offsets from those who have reduced or sequestered their emissions. Markets may be global or local and voluntary or mandated. One benefit of markets is that they reward innovation in development and implementation of emission reduction. More information on options and limitations here. Currently, 13 states have implemented a carbon market.
Invest in Renewable Energy
Governments can accelerate transitions to renewable energy (e.g., wind and solar) at large scale through tax credits or direct pay mechanisms. A national energy standard can drive clean energy deployment, and standards can also be implemented at the state level. Opening electricity markets to renewable sources is an important step, which generally is needed at the state level. Along with switching to cleaner energy sources, the power sector can adapt by switching to more distributed generation, energy storage, and microgrids to accommodate clean energy sources and climate extremes.
Transition to Electric Vehicles
In the U.S., the transportation sector is the largest source of carbon. Reducing transportation emissions involves investing in electric vehicles — especially for large fleets, supporting infrastructure such as charging stations, incentivizing the retirement of gasoline power vehicles, and reducing dependence on car travel. Investing in transit systems, such as trains and buses, can help reduce transportation-related emissions. Governments can also set stricter emissions standards for vehicles.
Reduce Other Greenhouse Gas Sources
In addition to CO2, several other potent greenhouse gasses are responsible for a significant portion of global warming. Methane leaks from oil and gas operators can be addressed by improved monitoring and regulation by state and federal agencies. Agricultural methane emissions can be reduced by changing animal feed. Hydrofluorocarbons used for industrial processes can be phased out. Excess fertilizer generates nitrous oxide, so amounts can be targeted to be more efficient.
