Re-establishing the Interagency Working Group on the Social Cost of Greenhouse Gases (GHG) and directing the issuance of an interim social cost of GHG schedule to ensure that agencies account for the full costs of GHG emissions, including climate risk, environmental justice and intergenerational equity
Social Cost of Greenhouse Gases (or, as more often called, a Social Cost of Carbon: SCC) has been described, in the past, "as the most important number you've never heard of". The Interagency Working Group was established in the Obama-Biden Administration (in 2009) with a "commitment to ensure that the social cost of carbon estimates continue to reflect the best available science and methodologies".
A SCC places a figure on the value of the economic impact of CO2 emissions to use in everything from regulation writing to discussions as to carbon legislation. Set the price too high and the economy could take a near-term hit in terms of lost opportunity costs for more sensible investment choices. Set the price too low and, well, the devastating impacts of catastrophic climate chaos could result as the economy under invests in climate mitigation and adaptation. The Obama Administration figure was $50 even as much analysis suggested that figure was (significantly) too low. The Trump Administration lowered it to $7 while, in fact, essentially eliminating it for decision-making (thus, functionally, a $0 value if not positive valuation for CO2 emissions). Watching glaciers melt, species go extinct, fires across the nation, allergy sufferers suffer more, and other climate crisis impacts clearly shows a $7 figure is too low.
As of later today, the U.S. government will (again) be pricing (even if inadequately) climate impacts into analysis, decision-making, and expenditures.
To be clear, this is both substantive and symbolic action.
- Substantive in influencing and driving decision-making and action across the Federal Government.
- Symbolic in that -- as with the also planned rejoining of the Paris Agreement -- President Biden, on his first day in office, is taking tangible steps to Act On Climate.
Moving quickly to restore a social cost of carbon to U.S. government decision-making is a downpayment for more serious Biden-Harris Administration climate action to come.