Big Oil Steps Up Support for Carbon Tax
20 June 2017 - 2:29PM
Dow Jones News
By Timothy Puko
Some of the world's largest oil companies and the country's
biggest auto maker are joining a group pushing the U.S. government
to tax carbon in an effort to slow climate change.
General Motors Co., Exxon Mobil Corp. and BP PLC are among
almost a dozen companies joining the Climate Leadership Council, a
new organization that advocates replacing many environmental
regulations with a simplified tax on businesses that release carbon
into the atmosphere. The plan proposes directly paying out this
money to all citizens to defray the likely costs from rising energy
prices.
A group of influential Republicans, including former secretaries
of State George Shultz and James Baker, have spearheaded the
group's efforts, which are at odds with many in their own
party.
Since winning control of the White House and Congress last year,
Republican lawmakers have worked to roll back Democratic policies
aimed at reducing greenhouse gas emissions, culminating with
President Donald Trump's decision to withdraw the U.S. from the
Paris climate accord.
Several business leaders criticized that decision, and some of
the companies joining the group, which officially launched in
February, have advocated more aggressive policies to address rising
temperatures and air pollution. Exxon, GM and the other
corporations are joining alongside astrophysicist Stephen Hawking,
hedge-fund magnate Ray Dalio, Harvard economist and former Obama
economic adviser Larry Summers and others.
Exxon Chief Executive Darren Woods used his first blog post in
that role this February to say a "revenue-neutral carbon tax" would
be a "sensible approach" to cutting carbon emissions.
It can promote energy efficiency and incentivize low-carbon
energy sources without "further burdening the economy," he
wrote.
"We have been encouraged by the proposal put forth by the
Climate Leadership Council as it aligns closely with our
longstanding principles, " Mr. Woods said in a statement
Monday.
"We acknowledged long ago that climate change is real and that
lowering emissions is both a social imperative and an economic
opportunity," GM said in a statement. "Addressing climate change in
an effective and sustainable manner requires a holistic approach
involving all sectors of the economy."
By joining now, the companies will be able to help shape the
fine details of the proposal that eventually comes from the
council, said Ted Halstead, the group's chief executive.
A tax is also simple enough that, if passed, it would mean the
country could eliminate a collection of regulations that have
guided climate policy in the last several years, including the
Obama administration's power plant rules, which the Trump
administration has moved to reverse.
"My guess is that the big appeal is getting rid of all the
regulatory morass," said Benjamin Salisbury, policy analyst at FBR
& Co. But "with Republican domination in Washington, you are
talking about the very early stages of a massive uphill climb."
Write to Timothy Puko at tim.puko@wsj.com
(END) Dow Jones Newswires
June 20, 2017 00:14 ET (04:14 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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