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Where We Are, Now that Biden’s Climate Change ‘Revolution’ Isn’t Coming

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A New York Times post this week, Biden’s Climate Change ‘Revolution’ Isn’t Coming, caught our attention with its trenchant look at climate policy’s low ebb in the wake of two crushing setbacks in just three weeks: the June 30 Supreme Court ruling blowing up EPA’s carbon-regulating authority under the Clean Air Act, and Joe Manchin’s coup de grace to the remnants of President Biden’s Build Back Better climate package.

Drawing on fellow Times writers, opinion editor Spencer Bokat-Lindell painted an unsparing portrait of U.S. — and global — climate stasis as dangerous heat was enveloping Britain, much of Europe and large swaths of the U.S. Here we reprint his post in full, with our commentary as counterpoint.

Biden’s Climate Change ‘Revolution’ Isn’t Coming.

Introduction

When President Biden took office, one of the first things he did was make a pledge: The United States, he vowed, would finally “meet the urgent demands of the climate crisis” through “a clean energy revolution.” That revolution was to be set in motion by a $2 trillion plan for putting the country on a path to 100 percent carbon-free electricity by 2035 and to net-zero greenhouse gas emissions by 2050, in line with the Paris agreement’s goal of keeping global warming well below 3.6 degrees Fahrenheit above preindustrial levels. (It now stands at 2.2 degrees.)

But after more than a year of negotiations, compromises, deal-making and belt-tightening, that plan appeared to collapse last week when Senator Joe Manchin, a conservative Democrat from West Virginia and a key swing vote in Congress, announced that he would not support funding for climate or energy programs.

What does the collapse of Biden’s agenda mean for the domestic and global politics of climate action moving forward? Here’s what people are saying.

Biden’s Plan, Though Not Revolutionary, Was Bold.

Introduction

Even a fully intact Biden plan would have fallen short of its goals. Nevertheless, its scope and reach would have far surpassed any climate program by any major nation. Build Back Better’s carbon reductions and climate benefits would have been numerically substantial and would also have triggered parallel policies in other countries.

(Chart is from CTC Sept 2021 post, Without a Carbon Tax, Don’t Count on a 50% Emissions Cut.)

1. The climate deal that wasn’t

As my colleagues have reported, experts generally agree that there are two ways of reducing greenhouse gas emissions at the speed and scale required. The first is making fossil fuels more expensive by ensuring that their environmental costs — global warming, for one, but also the staggering harms of air pollution — are reflected in their price. While widely championed by economists, carbon taxes have proved politically unpopular: A carbon tax by ballot referendum in Washington State has failed twice.

Biden hoped to take the other approach: reducing emissions by driving down the cost and improving the efficiency of low-carbon energy sources, like wind, solar and nuclear power. Initially, the centerpiece of his plan was a clean energy standard, which would have legally required utilities to draw 80 percent of their electricity from zero-carbon sources by 2030 and 100 percent by 2035. But when Manchin — who made millions from his family coal business and took more campaign money from the oil and gas industry than any other senator — pulled his support from that scheme in October, Democrats pivoted to a $300 billion package of tax credits to encourage the adoption of renewable energy and electric vehicles.

Now, both avenues to decarbonizing the country have been all but closed off. Even before Biden’s plan was whittled down, there was some debate about whether it was sufficient to meet his ambitions. But now that the president’s most powerful tools for reducing emissions have been confiscated by Congress (and the Supreme Court, which last month limited the power of the Environmental Protection Agency to regulate power plant emissions), “We are not going to meet our targets, period,” said Leah Stokes, a professor of environmental policy at the University of Santa Barbara, California, who has advised congressional Democrats on climate legislation.

Manchin’s reason for scuttling the negotiations, according to his spokeswoman, was his desire to “avoid taking steps that add fuel to the inflation fire.” But in The Atlantic, Robinson Meyer argues that, in addition to being “extraordinarily bleak for the climate,” Manchin’s reversal will actually worsen inflation: By reducing long-term demand for oil, Biden’s plan would probably have lowered gas prices, and an earlier version of the package would have led to hundreds of dollars in annual energy cost savings for the average U.S. household by 2030, according to an independent analysis from researchers at Princeton.

“America’s climate negligence endures,” Meyer writes. “That is not just due to Senator Manchin’s negligence, of course. It is also the collective responsibility of the Republican Party, whose 50 senators are even more resolutely against investing in clean energy than he is.”

1. The long shadow of Washington state’s failed carbon tax referendum

Bokat-Lindell could have said, about carbon taxes, that they are widely championed by economists and others who judge robust carbon taxing as uniquely capable of delivering big emission cuts quickly. Still, his characterization of carbon taxes as politically unpopular was fair.

He was also on solid ground in pointing to the failed Washington State carbon tax referendum. Perhaps even more than Donald Trump’s concurrent electoral win over Hillary Clinton, the 2016 defeat of Initiative 732 put a hurt on U.S. carbon tax organizing and advocacy. After all, if a carbon tax couldn’t garner an electoral majority in a certified blue state — one with a strong outdoors-nature ethic to boot — it was likely to be a tough sell almost anywhere else.

During the run-up to that vote we published a raft of posts calling out progressive icons like Naomi Klein, Van Jones and Mary Kay Henry for willfully distorting I-732 — labelling as a tax cut for the wealthy its swap of the carbon revenues to cut regressive sales taxes, for example. Their high-profile drive-by opposition also encouraged environmental justice groups to view I-732’s revenue-neutral design as a ploy to block green investments in disadvantaged communities rather than a design to offset lower-income households’ higher fuel expenses. Mainstream environmental groups mostly stayed on the sidelines, as did climate champion Bill McKibben. Their neutrality contributed to the 59-to-41 electoral wipeout which poisoned the well for a Green New Deal-style reboot effort in 2018.

Fast-forwarding to 2021-2022, it’s also fair to ask why climate activists trained virtually all of their fire on Joe Manchin, perhaps not grasping that his personal and political indebtedness to fossil fuels — duly noted by Bokat-Lindell — placed him beyond their reach. As The Atlantic’s Robinson Meyer notes, 50 Republicans blocked Biden’s climate package no less than Manchin. Protests in their home states might have moved the legislative needle or at least thrown down a marker to preserve Democrats’ control of Congress in the coming midterms.

2. A domestic defeat with global consequences

Because the United States has spewed more greenhouse gases into the atmosphere than any other nation, it plays a uniquely prominent role in global climate politics. (It’s worth noting that on an annual basis, China is now the world’s largest emitter, having surpassed the United States in 2006, though America’s per capita emissions still far exceed China’s.)

Given the United States’ historical “climate debt,” many lower-income countries have made their climate commitments contingent on those of the United States and other rich countries. Especially after Donald Trump withdrew from the Paris agreement, many world leaders were hopeful that Biden would arrive at the Glasgow climate talks last year having secured some legislative achievement as a mark of political seriousness. That, of course, did not happen.

Now, the United States’ international climate credibility is even more damaged, which will in turn impede global decarbonization efforts, The Times’s Somini Sengupta writes. “Manchin’s rejection and the recent Supreme Court ruling dealt a heavy blow to U.S. climate credibility,” Li Shuo, the Beijing-based senior policy adviser for Greenpeace East Asia, told her. It underlines what many people abroad already know, Li said: that “the biggest historical emitter can hardly fulfill its climate promises.”

The U.S. climate envoy, John Kerry, is expected to attend the next round of climate talks, in November in Egypt, but will once again have little to show for it. The United States “will find it very hard to lead the world if we can’t even take the first steps here at home,” said Nat Keohane, the president of the Center for Climate and Energy Solutions, an environmental group. “The honeymoon is over.”

2. Goodbye to the myth of U.S. global leadership on climate

We noted upfront that in addition to their sheer numerical weight, Build Back Better’s carbon reductions would have triggered parallel policies in other countries. Bokat-Lindell articulates this well, with framing that, appropriately, prioritizes U.S. climate stewardship as “necessary” rather than merely “sufficient.”

What would translate almost automatically from the domestic sphere to the global is U.S. federal-level carbon taxing. The simplicity of a national carbon price alone makes it child’s play to replicate it in any other country — in marked contrast to the welter of tax credits, rules and line items embodying Biden’s climate plan that would be devilishly hard if not downright impossible to copy elsewhere. Moreover, the logical companion piece to a national carbon tax — a Carbon Border Adjustment Mechanism — would powerfully incentivize non-carbon-taxing countries to enact their own in order to capture for themselves carbon tax levies that otherwise would be collected by their carbon-taxing trading partners.

That said, the various stories and authorities cited in the Times column have it exactly right. The heavy weight of America’s outsize cumulative carbon emissions, combined with what now must be seen as chronic federal government inaction — aptly summarized by Greenpeace as (“the biggest historical emitter can hardly fulfill its climate promises”) — expose the U.S. as climate laggard rather than leader.

Unfortunately, that fact didn’t keep U.S. Senator Lindsey Graham (R-SC), who once supported carbon pricing via cap-and-trade (see this 2009 op-ed in the New York Times), from uttering this arrant nonsense this week: “I don’t want to be lectured about what we need to do to destroy our economy in the name of climate change.”

3. Where the politics of climate action go from here

The Biden administration will have to rely on its less powerful arsenal of executive actions to make progress on its decarbonization efforts, however short of its initial targets. As The Times’s Coral Davenport explains, the White House could use its regulatory authority to increase vehicle emissions standards, potentially catalyzing the transition to electric vehicles; to compel electric utilities to slightly lower their greenhouse emissions without falling afoul of the Supreme Court; and to plug leaks of methane — an extremely potent greenhouse gas — from oil and gas wells. Biden may also use his pulpit to push for action at the state level, where climate policy has assumed new importance in the absence of federal leadership. “States are really critical to helping the country as a whole achieve our climate goals,” Kyle Clark-Sutton of the clean-energy think tank RMI told The Times. “They have a real opportunity to lead. They have been leading.” Both California and New York, for example, have committed to reaching net-zero emissions by no later than 2050.

As far as national electoral politics are concerned, The Times’s David Leonhardt argues, the fact that a single Democratic politician was able to derail Biden’s climate agenda should prompt Democrats to redouble their efforts to increase their Senate majority, particularly by winning over more voters in red and purple states. “It is clear that many blue-collar voters don’t feel at home in the Democratic Party — and that their alienation is a major impediment to the U.S. doing more to slow climate change,” he writes.

It is also possible that the government’s sclerosis could spur interest in less conventional and extra-electoral avenues to addressing climate change, among them nuclear power (the promise and drawbacks of which have been explored in this newsletter; the “degrowth” movement; speculative technological fixes such as solar geoengineering; and mass movements of civil and uncivil disobedience, as the ecologist Andreas Malm called for in his book How to Blow Up a Pipeline.

As the Colorado River reservoirs dry up, as the death toll from the record-setting heat waves and wildfires scorching Europe rises, and as more than a billion people in South Asia recover from a season of heat extreme enough to test the upper limits of human survivability, “this moment feels interminable,” Meyer of The Atlantic writes. “But what is unsustainable cannot be sustained. If one man can block the industrial development of what is, for now, the world’s hegemon, then its hegemony must be very frail indeed.”

But then, climate change seems to remain a relatively minor concern among the U.S. electorate: Just 1 percent of voters in a recent New York Times/Siena College poll named it as the most important issue facing the country; even among voters under 30, that figure was 3 percent.

That is just one poll. But it would perhaps be premature to rule out another direction the politics of climate change might take, one that could prove familiar to those who have witnessed how the American public has processed other cumulative traumas, like the drug overdose crisis or gun violence or the pandemic: a resigned acceptance of mass suffering, punctuated by moments of shock that serve only as reminders of how the unimaginable became normal.

3. The impasse at the abyss

Bokat-Lindell packed many leads and ideas into his closing section. We’ve touched on a lot of them in the past year.

Our high points:

A. The “arsenal” of potential executive actions is terribly meager vis-a-vis the task at hand. Stronger CAFE standards, for example, are badly undermined by light trucks’ takeover of the automotive fleet, and are assumed in most climate emission scenarios anyway.

B. States-as-climate-loci is also overblown. A full two dozen are solidly red, i.e., fossil fuel dominated. Even in blue states, policy is circumscribed by federal authority and bureaucracy; the holdup of New York’s congestion pricing program by federal highway officials is one case in point. Moreover, visions of 2050 net-zero or 2035 grid decarbonization by California and New York are almost certainly way out in front of actual commitments and have been made needlessly more difficult by nuclear power plant shutdowns.

C. Securing a true Democratic Senate majority and retaining the House this November are indeed vital.

D. Like Andreas Malm, we believe that direct action in defense of climate and earth needs to come to the fore, as we proposed in two posts last summer inspired by Malm’s book: Christopher Ketcham’s essay, Let’s Blow Up Luxury Carbon, and my own “Rich people cannot have the right to combust others to death.” Both are worth your attention.

E. The low primacy of the climate crisis among voters is both real and arguably not fatal. The U.S. is beset by so many crises that even so committed a climate scientist as Peter Gleick declared this week his greater alarm over incipient fascism.

A greater cause than insufficient ardor of the U.S. failure to enact “revolutionary” or even strong, incremental climate policies is an unproportionate and cumbersome political system that puts up multiple roadblocks to systemic change.

Alas, that isn’t poised to change. More and more, it looks like achieving genuine climate action will require passionate and creative direct action. Targets abound: helicopter commuting, crypto “mining,” obstructionists of wind farms or dense housing or congestion pricing, to name a few. Successful actions will be those that harness broad-based and truly intersectional campaigns attacking not just emissions but privilege and wealth.

We have an idea or two up our sleeve. Perhaps you do as well. We wish you luck. We still insist that carbon taxing is revolutionary — how can tackling a fundament of fossil fuel dominance be otherwise?

SCOTUS Ruling: Bad for Climate, Good for Carbon Pricing?

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Note: This post was amended on July 6 to include @bobinglis’s June 30 tweet, shown below.

Maybe we’re grasping at straws. But we see a possible silver lining in this week’s grievous Supreme Court ruling striking down US EPA’s authority to regulate carbon emissions via the Clean Air Act.

The gleam of hope is not that the decision didn’t dismember the federal government’s entire “administrative state” apparatus — you know, the tapestry of rules, regulations and procedures designed to further societal health, safety and accountability. We fear investigative journalist Amy Westervelt may be right that the ruling is a harbinger of steps in that very direction.

Rather, our thin beam of optimism is the opening the ruling could provide for carbon tax proponents to persuade our fellow climate advocates to lean less on fraught, slow and even quixotic approaches for tackling climate change, and to instead turn increasingly toward carbon taxing as a more-holistic and bulletproof way to bring down stubbornly high carbon emissions, both in the U.S. and worldwide.

In recent years, this space has done battle with what we’ve regarded as inadequate or even illusory climate strategies.

* We’ve criticized the decade-long campaign to divest financial and social institutions from fossil fuels, arguing in our posts and on our evergreen pages that capital will easily find ways to finance whatever legal product consumers demand, especially a product so economically and psychologically fraught as gasoline.

* We’ve hit back at the IMF’s unfortunate labelling of fossil fuels’ vast externality costs — both climate damage and immediate human-health harms — as “subsidies,” for fostering the fantasy that citizens need only stop their governments from bestowing public tax dollars on fossil fuel companies, and Big Carbon will crumble and wither away.

* We’ve even questioned the keep-it-in-the-ground movement, arguing, heretically, that “Oil that doesn’t flow to refineries through the Dakota Access Pipeline [to take one example] will instead come from somewhere else – Kuwait or Texas or a hundred other places – to be burned in cars, trucks and planes.” Our movement’s focus, we’ve argued, must be demand, not supply.

* And we’ve looked long and hard at the climate value of environmental regulation — the very approach the Supreme Court threw under the bus yesterday. Look at how, a year ago, we contrasted the fabulous success of the 1970 Clean Air Act and its 1977 and 1990 amendments in  slashing concentrations of particulates and other harmful pollutants in “ambient air,” with the less-technology-amenable issue of carbon emissions:

These and similar successes have led many climate advocates to urge similar regulatory pathways to curb carbon emissions. [Yet] regulatory approaches may offer only modest prospects for controlling and reducing emissions of carbon dioxide and other greenhouse gases, for several reasons. For one thing, the absence of antipollution devices for capturing or lowering CO2 emissions limits the scope of technology-forcing regulation. For another, promulgation of regulations is necessarily piecemeal and reactive. Moreover, the regulation-setting and administering process itself is cumbersome, delay-prone and subject to legal challenge by carbon interests.

From Niskanen Center post. Link is in text. We’ve added emphasis to #2 and #5.

We backed up that argument with reasoning from a penetrating paper by Case Western University law professor Jonathan Adler. The sidebar at right has Prof. Adler’s own “key takeaways” from the summary version he published on the Niskanen Center’s website. We highlighted two: A, climate regulations that aren’t clearly authorized by legislation will be particularly vulnerable to legal challenges — as we saw this week, when the six right-wing justices took advantage of the absence of explicit mentions of climate or carbon in the Clean Air Act and its amendments. And B, compared to emission-control regulations, a Congressionally enacted carbon tax should be less vulnerable to such challenges.

This isn’t to say that a carbon tax is just around the corner. We readily admit that a path to enacting a meaningful federal carbon tax — not a token, Exxon-style levy that damages coal but not oil or gas, but a robust carbon price that can reach triple digits in a half-dozen or fewer years — is almost impossible to discern.

Rather, now that essentially all of the prominent alternatives have been eviscerated or emasculated, it’s time for climate advocates to rethink, and, hopefully, relinquish, their anti-carbon-pricing positions.

The Carbon Tax Center has strived to be a climate team-player. At least since the start of the Trump administration, we’ve acknowledged the near-impossibility of passing a federal carbon tax in the current political configuration, and have instead pulled for less-ambitious but more-achievable (or so they seemed) incremental steps.

Just last fall, we wrote that “There’s logic in refraining from the one overarching policy that could lead the way to the deep cuts Biden is seeking: an economy-wide carbon tax. Giving businesses and households money to go green [instead] is more palatable, though less potent, than charging them for burning carbon.”

But we’ve also strived to be truth-tellers. That’s why we called that 2021 post, “Without a Carbon Tax, Don’t Count on a 50% Emissions Cut.” And it’s why we’re a little less inclined than some of our climate comrades to go into full mourning over yesterday’s Supreme Court decision .

Please also note that unlike the indefatigable Bob Inglis, who bravely fought for carbon pricing as a six-term Member of Congress (1993-1999, 2005-2011) from South Carolina’s 4th District, we’re not calling on “Conservatives in Congress” to push for carbon taxing. We would love it if even a few did, but that ship sailed over a decade ago, as we’ve summarized on CTC’s Conservatives page.

To sum up: Yes, the Supreme Court ruling was ignorant. Yes, it was destructive. Yes, it’s almost certainly a harbinger of worse. But it didn’t demolish policies that were on course to rescue our planet and make Biden a climate hero.

Yesterday’s decision did damage, but maybe it pulled some wool from our eyes as well.

Global warming has made the severe heat wave that has smothered much of Pakistan and India this spring hotter and much more likely to occur, climate scientists with World Weather Attribution, a collaborative effort among scientists to examine extreme weather events for the influence, or lack thereof, of climate change, said Monday. They said that the chances of such a heat wave increased by at least 30 times since the 19th century, before widespread emissions of planet-warming gases began. The relentless heat, with temperatures soaring beyond 100 degrees Fahrenheit for days, particularly in Northwestern India and Southeastern Pakistan, has killed at least 90 people, led to flooding from glacial melting in the Himalayas, contributed to power shortages and stunted India’s wheat crop, helping to fuel an emerging global food crisis. The study found that a heat wave like this one now has about a 1 in 100 chance of occurring in any given year. Before warming began, the chances would have been at least about 1 in 3,000. And the chances would increase to as much as 1 in 5, the researchers said, if the world reaches 2 degrees Celsius of warming, as it is on track to do unless nations sharply reduce emissions.”

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New York Times climate reporter Henry Fountain, in Climate Change Fuels Heat Wave in India and Pakistan, Scientists Find, May 23.

Bitcoin Mining is Gobbling Up New York’s Precious Renewable Energy

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(As published today in NYC-based Gotham Gazette. Footnotes appear at end. — C.K., May 13, 2022)

Like time in Steve Miller’s classic-rock song, New York’s decarbonization targets keep slipping into the future.

Highway widenings are spurring more driving. Suburban resistance to upzoning is locking in energy-demanding sprawl. Electricity from the state’s wind turbines shrank last year,1 even as climate advocates, relying on dodgy U.S. Energy Department modeling, overstate future carbon reductions from “electrifying everything.”2

Promising developments like offshore wind leasing and new transmission to carry hydroelectricity from Quebec barely compensate, if at all, for carbon emissions unleashed by closing the Indian Point nuclear plant. As I have pointed out elsewhere, shutting existing zero-carbon power sources means that new ones don’t actually cut emissions; at best, they keep us running in place, punching huge holes in pledges to achieve a carbon-free power grid by 2040.

To this dreary picture, add crypto mining — enormous networks of electron-eating computers running 24-7 so that digital currencies like Bitcoin and Ethereum can maintain virtual “coins” or “tokens” in encrypted ledgers that bypass traditional third parties like banks.

From Buffalo and the Finger Lakes to the state’s northern tier, crypto entrepreneurs are building new generators or firing up retired ones to power their crypto mining operations. Other crypto sites draw on the grid.

Self-sourced or not, the requisite electricity ends up forcing additional burning of fossil fuels, as Sierra Club researchers documented in extensive comments this week to the President’s Office of Science and Technology Policy, pushing the state’s ambitious decarbonization goals further out of reach. To what end?

In Uber’s Footsteps

Enigmatic, opaque, futuristic — crypto-currency cries out for historical analogues. Here’s one: Uber.

Uber burst on the scene in the early 2010s not as a new form of transportation but a new kind of network enabling a reconfiguration of transportation. Its appeal was tailored around three promises: it would enhance traffic efficiency by eliminating cruising for fares; it would extend convenient for-hire vehicle service outside Manhattan; and it would end service refusals to people of color.

The packaging — sleek and app-enabled — augured a frictionless, digital future. With a few taps New Yorkers could summon a chariot.

The results were mixed. We now know that stockpiling of Ubers in Manhattan has wrought even more gridlock than taxi cruising. But Uber did broaden access to for-hire vehicles, even as it bled ridership from the MTA and, worse, rained economic ruin on the incumbent yellow-cab industry.

Bitcoin and other crypto-currencies come with their own glossy promises, though these are more chameleon-like. (Earlier this year New York Times columnist Paul Krugman disparaged them as “word salad.”) Among them, as Annie McDonough reported recently in City & State, is the prospect of liberation from ingrained discriminatory banking and lending by U.S. financial institutions.

“[Crypto backers] see the technology as an economic equalizer,” writes McDonough. “A tool not just for the rich to get richer, but for people who have been discriminated against by banking institutions or locked out of investment opportunities, including people of color and low-income communities.”

Really? In New York, and almost certainly anywhere else, unbanked households overwhelmingly lack the requisite credit history or liquid assets — bank accounts, debit cards, credit cards — to purchase cryptocurrency tokens. Moreover, scammers and grifters are finding crypto fertile territory for high-tech swindles, as New York Times columnist Farhad Manjoo noted this month. An arguably safer and more effective way to root out credit segregation would be to speed Biden administration rulemaking to add teeth to the Community Reinvestment Act — the 1977 law intended to repair decades of redlining.

The emergence of crypto-front groups like the National Policy Network of Women of Color in Blockchain demonstrates the industry’s readiness to exploit deep-seated bitterness over legacy redlining. So does the participation in crypto lobbying of Bradley Tusk, the one-time Mike Bloomberg consigliere who a decade ago deftly deployed Black fury over persistent taxi discrimination to help Uber eradicate cabbies’ exclusive right to pick up street hails in Manhattan and subsequently helped fend off serious regulation of the app-ride industry for several crucial years.

Let’s Burn Up The Grid

There is no registry of electricity consumed by crypto mining in New York State. Worldwide, though, crypto burns through an estimated 91,000 gigawatt-hours (or, 91 billion kilowatt-hours) of electricity annually, according to a New York Times survey of crypto last September. Some 16% of that, or 15,000 GWh, is said to be consumed in the United States.

While New Yorkers are accustomed to thinking of our state as resource-poor, crypto miners are now exploiting half-a-dozen hydro power sites and formerly boarded-up fossil-fuel plants in northern and western New York. One industry source cited by City & State estimates that 13-14% of his company’s U.S. crypto mining takes place in our state. Extrapolating that share across the industry, crypto is annually consuming 2,000 GWh of electricity in New York State — a figure that could grow not just with increased transactions but with ever-more complex digital encryption.

Even holding at 2,000 GWh, that’s a lot of juice: more than the electricity generated last year from all the solar panels on residential buildings in the state, or more than what will come from the first 100 promised offshore wind turbines once that industry launches (see graph below). And, though crypto in New York consumes less electricity than all current solar or wind, that comparison is of no comfort, as those renewable sources need to be displacing fossil fuels (primarily fracked gas) from the state’s grid — which they can’t do if their output is effectively being consumed mining Bitcoin.

The operative word, “effectively,” encompasses two distinct but complementary dynamics. Grid dynamics dictate that any new locus of demand such as Bitcoin forces utilities to draw more heavily on fossil-fuel generators, because the non-carbon sources — nukes as well as renewables — already run as flat-out as they can. The climate dynamic is that from a statewide perspective, additional use of fossil-fuel generators negates the carbon-reduction benefits that wind and solar and nuclear would otherwise provide.

This perspective casts a harsh light on claims that a particular crypto installation is being renewably sourced. Connecting crypto to a refurbished hydro dam or solar or wind farm may sound green, but all those whirring hard drives are really siphoning off carbon-free electricity that now “won’t be available to power a home, a factory or an electric car,” as the Times’ 2021 story put it. (One hopes that the irony of crypto adherents miscounting green electrons doesn’t carry over to their currency bookkeeping.)

Carbon Tax vs. Crypto?

A stiff New York State carbon tax could slow and even reverse the rise of cryptocurrency here (likewise nationwide).

The rise in electricity prices would undermine whatever competitive advantage Bitcoin miners gain from locating in New York. Some miners would leave, new ones would stay away, and those who stay would endeavor to blunt the impact of the tax by upgrading their efficiency.

Not only that, crypto miners seeking zero-carbon generation increasingly would find themselves competing with non-crypto businesses seeking to contain their power costs. Other businesses, less power-intensive per dollar of revenue, would be in position to outbid the crypto companies.

The prospective flight to other jurisdictions could help build momentum to tax carbon emissions there as well, as more states and countries come to conclude that crypto jobs and revenues aren’t worth straining their grids, not to mention trashing their air-sheds and stealing their quiet.

This isn’t to hold out carbon taxing as a one-bullet crypto killer — we need many bullets for that, the bigger the better — but to illustrate its broad potential to stop frivolous (and in this case imbecilic) new uses of electricity before they can gain a foothold.

Why not regulate crypto away? That battle would consume years, tying down policy resources while emissions continued to spew. Worse, we have neither the time nor the ability to see around corners required to enact, piecemeal, restraints on each new locus of energy demand.

Even as energy-efficiencies continue to do wonders — total U.S. electricity use last year was just a few percent higher than in 20053 — underpriced electricity elicits new hellspawns of needless use that undo much of that progress.

Carbon taxes by themselves can’t solve everything that ails climate. But they could, for a change, get the solutions out in front of the problems.

***
Charles Komanoff, long-time New York policy analyst and environmental activist, directs the Carbon Tax Center. On Twitter @Komanoff.

1US Energy Information Administration, “Electric Power Monthly,” Table 1.14.B, “Utility Scale Facility Net Generation from Wind,” shows 4,522 GWh in New York State in 2020 and 4,387 GWh in 2021.
2To estimate future carbon reductions from the December 2021 New York City ban on gas heating and cooking in new buildings, the law’s proponents and the Dec. 15, 2021 New York Times story reporting on it both cited a Dec. 10, 2021 post, Stopping Gas Hookups in New Construction in NYC Would Cut Carbon and Costs, by the consultancy RMI. The RMI authors note that their calculations employed future electricity grid emission factors modeled by U.S. DOE’s National Renewable Energy Lab’s “Cambium” dataset. Examination of that dataset reveals, inter alia, that it assumes a non-existent five-fold increase in New York State on-shore wind-generated electricity from 2020 to 2022.
3Figures from US Energy Information Administration, “Electric Power Monthly,” Table 7.2a Electricity Net Generation: Total (All Sectors)” supplemented by Table 10.6 (“Electricity Net Generation from Distributed Solar”) indicate total U.S. electricity generation of 4,164,565 GWh in 2022 and 4,055,785 GWh in 2005. For those interested, the implied compound annual average growth rate over those 17 years is a minuscule 0.17 percent.

Correction: This post was amended on May 26 to reflect the fact that New York’s estimated 13-14% share of U.S. crypto mining applies to a single crypto company rather than industry-wide. The extrapolation to other companies is the author’s, not the source’s.

May 16 addendum: We strongly recommend How crypto made me fall in love with carbon pricing all over again, an April 27 essay by Frontier Group energy analyst Tony Dutzik covering the intersection of crypto mining, carbon pricing, energy demand and Jevons Paradox.

 

The Climate Movement In Its Own Way

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The Nation magazine today published my essay, The Climate Movement In Its Own Way. I’ve cross-posted it here to allow comments and offer context.

Use link at top to access the original version of this post in The Nation.

It’s a follow-on to my April 4 essay, also in The Nation, The Case Against Closing Nuclear Power Plants, which I posted here under the title, For Climate’s Sake, Don’t Shut U.S. Nukes. 

The new piece calls on progressives in the climate movement — a bulwark of the magazine’s readership — to move beyond ideology and make the climate movement more pragmatic and holistic by supporting carbon pricing.

In introducing my April 4 post, I wrote:

[This post] implicitly embodies a hope that my willingness to examine my own deeply-held convictions in a new light may encourage others to do likewise with their own climate dogma. Reconsideration of ideologically-based objections to carbon pricing by self-proclaimed progressives would be a good place to start.

Consider today’s post an explicit expression of that hope. 

  — C.K., April 30, 2022

PS: The new post had to be shoehorned into a tight word count. The version below restores a half-dozen phrases cut from the version in The Nation.

The Climate Movement In Its Own Way

After decades of critically documenting nuclear power’s outsize costs, I finally admitted to myself that the carbon benefits from continuing to run US nuke plants are substantial, and in some respects irreplaceable. I made the case for keeping them open in an April article on TheNation.com.

Closing New York’s Indian Point reactors last year was a climate blunder, I wrote. Not just because fracked gas is now filling the breach, but because the need to replace the lost carbon-free power means that new wind and solar farms won’t drive emissions down further. California, facing the same equation, should shelve its plan to shutter the Diablo Canyon nuclear power plant in 2024, I said.

“Total bullshit,” a lifelong anti-nuker wrote me. “You should be ashamed.” More representative of the comments, though, was this: “Continued reliance on nuclear power going forward now is part of the price of our collective past failures.”

Amen. The failures propping up US carbon emissions are multiple. Not just Senator Joe Manchin, who torpedoed President Biden’s Build Back Better clean-energy legislation. Not just the Senate Republicans, any one of whom could have cast the critical 50th vote. And not just Big Carbon, whose dark money and disinformation perpetuate climate inaction.

Through its own poor choices, the climate movement is failing as well.

Too many of our climate campaigns are ill-considered. Too much of our legislative agenda is narrow-gauged. Too often, our lens for assessing climate proposals is ideological rather than pragmatic.

Consider the decade-long campaign to induce pension funds and banks to divest their fossil-fuel holdings. Exxon-Mobil’s share price wobbled for years, but since early 2020 Exxon’s stock has risen faster than the market average. Is Big Oil shamed and starved for new capital today? Not with roaring demand for oil and gas. US motorists’ insanely over-powered, super-sized vehicles account for about a tenth of worldwide petroleum consumption. Yet challenges to American motordom come mostly from outgunned cycling and transit campaigners, not the climate movement.

Now, with most federal action blocked, climate activists sought and won a ban on gas heat in new buildings in New York City, though they failed in their first push for a statewide ban.

The drive to “electrify everything” is laudable, given that electricity can be decarbonized whereas gas furnaces and stoves cannot. Yet trying to take the ban statewide elbowed aside bolder ideas, such as legalizing accessory dwelling units and stopping highway widenings.

To be sure, not everyone is ready to admit that fatter highways and pastoral, exclusive suburbs are carbon disasters. But only broader campaigns can link climate to other pressing concerns like homelessness, housing unaffordability, costly gasoline, and traffic violence.

The granddaddy of US climate failures, of course, is the absence of the one policy that economists believe could unlock the vast emissions reductions needed to meet the Paris Agreement goal of limiting global warming to 1.5 degrees Celsius: national carbon taxation.

A robust federal carbon tax isn’t just the sharpest card in the climate policy deck. It’s like adding a whole new deck to the one we already have.

A straightforward “price on carbon” — administered not via easily gamed cap-and-trade schemes but through “upstream” levies on the carbon content of fuels — was once thought appealing to left and right alike. It is now abjured by both.

The right, of course, is both repellently all-in on fossil fuels and hyper-aware that its wealthy base of profligate carbon consumers would pay the most through a carbon tax. Which makes the left’s antipathy to carbon taxes not just surprising but downright bizarre.

This hesitation has multiple strands: seeing carbon pricing as another contrivance of the predatory capitalism that built white wealth off the land and labor of Indigenous and African-descended peoples; suspicion that carbon pricing lets polluters avoid reducing local emissions by purchasing “offsets”; a misplaced conviction that carbon pricing in California has worsened disproportionate pollution burdens on disadvantaged communities; and excessive faith that a regulatory approach can untangle the multiple strands that enforce fossil-fuel dependence.

Economic models abound to show how fast carbon taxes will shrink the use of fossil fuels. Models aren’t life, but they agree broadly that a robustly rising federal tax could, within a decade, dial back US emissions by about a third.

To turn our backs on carbon reductions on that scale is, I believe, suicidal.

Our worsening climate stalemate led me to abandon my silence as existing nuclear power plants were extinguished. A similar rethink on carbon taxes by progressives won’t win over climate denialists. In time, though, with a more far-sighted left ascendant, it could become a stepping stone to climate progress.

Charles Komanoff, a longtime environmental activist and expert on nuclear power economics, directs the Carbon Tax Center.

Exxon doesn’t care if you divest. Neither does climate.

By

The campaign to combat climate change by inducing pension funds, universities and other prominent fiduciaries to dump their fossil-fuel holdings has failed. Ten years into the divestment project, it’s time to move on.

Divestment campaigning doesn’t seem to have damaged Exxon’s share price since 2020.

When the writer and climate activist Bill McKibben kicked off the campaign in a July 2012 Rolling Stone article, Global Warming’s Terrifying New Math, the rationale was three-fold: (1) dry up capital and make it harder for the fossil fuel industry to create new mines, wells, pipelines and terminals; (2) weaken the industry’s social and political standing so it couldn’t easily block pro-climate policy; and (3) by hanging a “Dump Me” sign around Big Oil, amp up climate organizing. Not for nothing did McKibben subtitle his Rolling Stone article, “Make clear who the real enemy is.” It was Exxon and its brethren.

How’s it going, ten years on? Not well. The clearest indication is Exxon-Mobil stock’s new-found attractiveness to investors. From Feb. 1, 2020 to Feb. 1, 2022, a two-year period that predates Russia’s invasion of Ukraine and brackets the Covid-19 pandemic, Exxon’s stock price climbed 75 percent, outpacing the 55 percent rise in the S&P 500 index.

While non-U.S. oil giants Saudi Aramco and BP have appreciated less than the S&P benchmark, the #2 and #3 U.S. oil companies, Marathon Oil and Valero Energy, have matched Exxon’s faster-than-average share price rise. Unsurprisingly, Exxon’s market-beating performance accelerated since Feb. 1, as the oil industry reaps the fruit of high prices without yet suffering much contraction in demand.

It is true that Exxon and other oil majors under-performed the market from 2012 to 2020. So why are oil stocks now so buoyant? The answer lies in robust demand for petroleum products, both in the U.S. (about a fifth of world usage, with half of that in motor fuels) and globally. Until Russia attacked Ukraine, disrupting trade and dampening near-term economic expectations, world petroleum consumption this year was headed to near-record levels.

Is it, though?

More importantly, considering that stock prices essentially embody investors’ expectations of future earnings streams, the lords of capital are betting on the oil and gas business to stay profitable for some time.

Reserves will not stay in the ground, in other words, unless and until consumption shrinks. It ought to be obvious that oil consumption drives production, not the other way around. The same “whack-a-mole” syndrome that made “keep it in the ground” campaigns ineffectual from a climate standpoint (as I lamented in this 2016 post) also afflicts efforts by socially responsible investors to starve capital flows to fossil fuel corporations.

No matter how far divestment penetrates bank boardrooms or Ivy League endowments, a world intent on using fossil fuels can always count on a vast array of wealth holders to finance their resupply.

McKibben admitted as much last fall, shortly after the New York Times reported on meticulous research by the Private Equity Stakeholder Project that found that private equity funds for a decade had been investing $100 billion a year in fossil fuel energy. In an October 2021 Times op-ed (see headline above), he admitted the real purpose of divestment campaigns: to build the climate movement and erode the social and political standing of the fossil fuel industry (what I earlier called aims #2 and #3):

Since most people don’t have oil wells or coal mines in their backyards, divestment is a way to let a lot of people in on the climate fight, because they have a link to a pension fund, mutual fund, endowment or other pot of money. When we began the divestment campaign, our immediate goal was, as we put it, to “take away the social license” of Big Oil. (emphasis added)

This Oct 13, 2021 NY Times story demolished a key rationale for fossil-fuel divestment campaigns.

Movement-building is vital. Eroding the social standing of fossil-fuel extractors and purveyors is overdue. But what happens when divestment activists discover that moving their college or municipal pension fund out of fossil fuels hasn’t visibly changed the material world of energy production and consumption?

In the 2021 op-ed, McKibben added that divestment campaigning “was a vehicle to let people know the essential truth about the fossil fuel industry, which is that its oil, gas and coal reserves held five times as much carbon as scientists said we could safely burn.” That 5-fold incongruity, in fact, was the titular “new math” in his archetypal 2012 Rolling Stone article.

The math is unassailable. McKibben’s new metric demonstrated, ingeniously and incontrovertibly, the incompatibility between oil industry health and planetary health. Yet divestment, as a tactic, hasn’t delivered.

Divestment campaigners have a world of actions and organizing to do instead. For the next six months, though, they need to focus on political action. Electoral action.

Odds be damned, the Democrats have got to hold onto Congress this November. Political commentator Jamelle Bouie reminded us why recently when he was asked why “the Democrats can’t seem to get traction on [climate and other progressive policies] that enjoy broad support”:

In terms of getting policies through Congress, they just don’t have the votes. [But] I think this picture would look very different if there was one more or two more [Democratic] senators. If Cal Cunningham in North Carolina had won [in 2020], if Susan Collins’s opponent in Maine [Susan Gideon] had won, we’d be looking at a very different situation.

Needless to say, a very different situation, of the opposite sort, is what we’ll be looking at if the other, climate-denying, democracy-wrecking party prevails in the midterms. Between now and Tuesday, Nov. 8, not just divestment but probably all climate-focused organizing needs to yield to, or at least be subsumed by, electoral campaigning.

If your state or district is competitive, start electoral organizing now. If not, these resources can plug you in:

  • People’s Action has both electoral and non-electoral volunteering.
  • Swing Left has local chapters to connect you for phone-calling, post-carding, donating, etc.
  • For down-ballot electioneering (which also brings people to vote for up-ballot races): Sister District.
  • For Spanish-speaking calling in AZ, connect to Mision por Arizona via Mission for Arizona.
  • To donate $$ to grassroots rather than party organizations: Movement Voter Project.