75 firms call for carbon pricing to help combat climate change
WASHINGTON — Top officials from 75 companies descended Thursday on the Capitol to try to persuade lawmakers to support the creation of a carbon price mechanism to reduce greenhouse gas emissions.
Among them were more than 20 companies from the Fortune 500, including brand names such Levi’s, Johnson & Johnson and Pepsi, along with European oil majors BP and Shell, who took meetings with Republicans and Democrats in Congress in a bid to increase momentum for legislation addressing climate change. The idea behind carbon pricing mechanisms, such as taxes, is to create market incentives for businesses and consumers to reduce greenhouse gas emissions.
“If you read the United Nations report, we’re down to 11 years to get this right. This is not an academic conversation,” said Gary Hirschberg, chairman of the organic dairy giant Stonyfield Farm on Londonderry, N.H. . “Until we engage the wider market [of U.S. industry], we’re not going to be able to move at the kind of speed required.”
The visit comes as climate change is getting increasing attention among Democrats and Republicans alike, with Rep. Alexandria Ocasio Cortez, D-N.Y., pushing her Green New Deal while Republicans, inclujding Sen. John Cornyn, R-Texas, argue
for increasing federal spending on research into reducing greenhouse gas emissions. Deeply divided
But politicians remain deeply divided, often within party ranks, as they weigh the long-term consequences of climate change against the shorter-term economic implications of shifting a global economy largely powered by fossil fuels to wind farms and solar panels.
For instance, Houston’s economy is intrinsically tied to oil and natural gas, from the refineries and petrochemical plants employing tens of thousands of workers to the corporate headquarters of oil companies filling out downtown and the Energy Corridor. Any move to tax greenhouse gas emissions would by design reduce demand for the gasoline and other petroleum products they sell.
“Climate change is one of those classic collective action problems,” said John Larsen, a director at the consulting firm Rhodium Group in Washington. “It’s tough to see a Congress that’s receptive to [a carbon price] that’s anything like the current makeup.”
But taxing companies for carbon emissions is a concept getting increasing attention within corporate America, as executives become increasingly aware of the importance younger consumers place on carbon footprints and other environmental issues. Major support
Earlier this week, BP and Shell each pledged $1 million to American’s for Carbon Dividends, a collective of nonprofits and corporations, including Exxon Mobil and Conoco Phillips, advocating for a $40 a ton carbon fee, proceeds from which would be paid to Americans through dividend checks.
At a press conference Wednesday, none of the executives gave any chance to a carbon price passing the Republican-led Senate or getting the support of President Donald Trump, who has questioned the severity and causes of climate change.
But they argued momentum was on their side, hoping that political leaders would either be convinced or be voted out of office.
“You have oil companies talking about a carbon price,” said Hugh Welch, president of the nutrition company DSM North America. “We have enough collective mass now to do something.”
After the press conference ended, Sen. Mitt Romney, R-Utah, the former presidential candidate, waited outside to meet with the CEOs.
Asked about his view on a carbon price, Romney said, “I’m just going to listen to what they have to say.”