Biden wades into carbon pricing; a nod to Big Oil

China's drop in emissions this spring offers glimmer of hope for its renewables effort.

In today’s edition:

— Establishment of a global carbon pricing market takes a big step forward in Washington

— Voters begin to react to local efforts to sue Big Oil

— China’s drop in emissions this past spring shows its renewables efforts are working

— International Tribunal rules greenhouse gas emissions qualify as marine pollution

— More than three-quarters of world population felt extreme heat for a month or more last year

— Ocean group to broadcast live from Great Pacific Garbage Patch

Deadly tornadoes and severe weather struck the central U.S. over the weekend, killing at least 22 people. More than 110 million people were at risk of severe weather Monday, concentrated over the East Coast. This tornado formed near Union City, Okla. earlier this month. Photo: meteorologist Andrew Justin via X.

The U.S. government’s new carbon pricing framework is welcome news to the burgeoning market for charging companies for their harmful emissions, coming this week after countries raised a record $104 billion last year. It’s also a discreet nod to U.S. fossil fuel companies that their plans to take carbon from the air while continuing to produce oil and gas will lead to a viable market.

U.S. Treasury Secretary Janet Yellen and a host of other officials and dignitaries said the framework will hopefully add some integrity to the nascent market for carbon offsets, which has been beset with controversy over authenticity and greenwashing. There are more than 75 carbon trading schemes currently worldwide, including one in California, but by acknowledging the power of a carbon market at a federal level, the Biden team is laying claim to a major new way to fight climate change.

Carbon prices have lagged the past few years amid a surge in oil and energy demand after Russia invaded Ukraine, and many experts say they remain too low to generate the type of aggressive strategies to cut emissions that officials would like. Carbon currently trades about €76 ($83) in Europe, which is about what a barrel of oil costs — meaning there is little incentive for fossil fuel companies to invest in cutting.

The establishment of a market, however controversial, will help President Joe Biden with climate advocates who favor a market-based solution, like us. But it will be too complicated to sway most of the U.S. electorate. As a nod to fossil fuels, who are being aggressively courted by former President Donald Trump, it’s a smart move that lets the companies know there is a place for them in a second Biden term.

It will be messy for sure, and fraught with controversy, but any attempt to kickstart a global carbon market is a move in the right direction.

Don’t forget to contact me directly if you have suggestions or ideas at dcallaway@callawayclimateinsights.com.

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Majority of U.S. voters favor suing Big Oil for climate damage