I’ve heard it mentioned that carbon pricing (or an equivalent cap-and-trade system) doesn’t work. I believe that if implemented, it would be the single biggest lever to integrate the concept of integral ecology into our economic system and prevent climate catastrophe.
Consider these two points.
First, from the CFTC, a US market regulator.
- Source: https://www.cftc.gov/PressRoom/PressReleases/8234-20
- Original source was the ‘Political Climate’ podcast that interviewed an ESG investment manager at CalPERS (California public employee retirement system) and one of the contributors to the report: https://art19.com/shows/political-climate/episodes/d86d310d-08f8-4f43-bd72-ab98c369b265
Second, consider that we have a great example of where carbon price/cap-and-trade programs work: acid rain. Remember when that was a problem?
Quick overview from the Environmental Defense Fund: https://www.edf.org/approach/markets/acid-rain
More details if you’re interested: https://voxeu.org/article/lessons-climate-policy-us-sulphur-dioxide-cap-and-trade-programme
In addition to everything we have talked about in the last two modules, I assert we also need to support and implement a carbon price/cap-and-trade/cap-and-dividend policy in the US and around the world to align trillions of dollars of assets with integral ecology.
Agree? Disagree? Thoughts?