Joe Biden’s victory gives the people who dream up big climate ideas something they haven’t experienced in years: an opportunity to wield power in U.S. and shape the future of the world’s second-biggest source of greenhouse gases.
The president-elect will take office having made unprecedented commitments to address global warming, and with a 15-year plan to create carbon-neutral electricity across the U.S. on the way to achieving net zero emissions by 2050. Biden has promised to spend $2 trillion on a sweeping climate-and-job agenda. Getting that done wouldn’t be easy, especially with control of the Senate poised on a knife’s edge. And the U.S. will be playing catchup, after falling far behind other leading economies on climate goals.
But there are powerful climate levers that can be pulled from inside the White House, and plenty of reason to expect that a president who prioritizes climate action can drive policy. Even without help from the federal government, the Trump years saw American businesses build out renewable power and ditch polluting fuels. Imagine what might happen under a president who has said he will rejoin the Paris Climate Agreement as one of his first acts?
That’s what Bloomberg Green asked a group of creative climate thinkers to do. We invited policy-minded people from think tanks, business, and finance to play White House climate counselor and give their best advice to Biden on his early climate priorities. The ideas run the gamut from carbon pricing to new power lines for renewable electricity to giving rural Americans a seat at the policy-making table. One thing everyone agrees on: As president, Biden will have his work cut out for him.
“A carbon price benchmark—initially $50 per ton—would reflect the benefits of reducing the pollution causing climate change [and] guide agencies in setting emission goals, akin to their 2009 and 2015 efforts. This would reorient budget planning and redirect the management of vehicle fleets, buildings, and other assets to account for climate change. The White House could support legislation—clean energy subsidies in a stimulus package, a national clean energy standard, or a carbon tax—so long as the carbon benchmark justifies the cost of doing so. This would ensure that climate change policies make sound investments on behalf of the American taxpayer.” —As told to Akshat Rathi
Vicki Arroyo, Executive Director, Georgetown Climate Center
Put climate experts everywhere.
“Making climate change a top priority in the White House and Cabinet from day one begins during his transition—with people. Biden should appoint senior officials with climate expertise, including naming a respected Assistant to the President for Climate and creating a National Climate Council. To foster a ‘whole of government’ approach, climate policies should be coordinated through an inter-agency, Cabinet-level task force, with climate councils in all key agencies to identify and work toward aggressive goals.”
“With extraordinary climate leadership at the top, the substantive policy work of his administration will flow that much easier: Rejoining the Paris Agreement and committing to even stronger U.S. international leadership; cleaning up the power sector by 2035, in-line with his campaign promise; bringing the economy to net-zero emissions by midcentury; using the Clean Air Act to regulate climate pollutants across the economy, including reversing Trump regulatory rollbacks. With the Senate under Republican control, legislative opportunities will be limited but could include Clean Energy Standards. Continued Covid-19-related stimulus discussions will also provide opportunities to support investments in clean energy infrastructure and resilience.” —As told to Eric Roston
Mirza Baig, Global Head of Governance & Stewardship, Aviva Investors
Remove subsidies and tax breaks for fossil fuels.
“We would urge the Biden camp to remove all artificial support for fossil fuels and redirect federal funding to support investments in renewables. This will accelerate the shift in capital expenditures directed towards lower carbon energy assets, enable the scaling up of investments in renewable technologies, stimulate domestic jobs growth, and help re-establish U.S. international leadership in tackling the climate challenge.” —As told to Saijel Kishan
Randolph Bell, Director for Global Energy Security, Atlantic Council
Take care of fugitive methane emissions.
“Failing to fully address methane leakage is increasingly a risk for the climate and for the U.S. economy. Methane makes up at least 10 percent of U.S. greenhouse gas emissions—recent analysis suggests far more—and is at least 25% more potent at trapping heat than carbon dioxide. With natural gas projected to play an important role in the global energy system even under aggressive decarbonization scenarios by providing low-carbon power in the developing world and feedstock for hydrogen production (with carbon capture and storage), addressing methane is crucial for meeting climate goals.”
“The U.S.’s methane problem has the attention of major oil & gas producers, who decried the Trump Administration’s August reversal of an Obama-era rule on methane. Engie’s decision last month, under pressure from the French government, to delay its $7 billion deal with U.S. LNG company NextDecade because of U.S. methane emissions underscores the risks to the U.S. economy.”
“President-elect Biden can immediately direct the EPA to initiate a new rulemaking process to ensure that industry monitors and addresses leaks in new equipment, as Obama’s rule did. Biden can also be more ambitious and address leaks in older equipment, an effort that was not completed under Obama.” —As told to Akshat Rathi
John Berger, CEO, Sunnova Energy International Inc.
Extend tax credits for wind and solar energy.
“You can have a carbon-free transition plan and have a huge economic plan, both of which the country needs. We can have a carbon-neutral country with higher economic growth. So there is no trade off.”
“I would extend solar’s investment tax credit and wind’s production tax credit immediately. Our industry can create lots of jobs—we can’t hire people fast enough. If solar had another five years of the federal investment credit at 30% and with a rejoining of the Paris climate accord, that certainly of policy would help us hire more people than we’re doing.” —As told to Brian Eckhouse