As the full House of Representatives prepares to consider House Bill 2025, the “Pennsylvania Carbon Dioxide Cap and Trade Authorization Act,” I respectfully write to you today from Ceres, an organization that works with influential investors and companies to build leadership and create a more sustainable economy.
Ceres and our members have long been supporters of smart, market-based carbon dioxide reduction policies such as the Regional Greenhouse Gas Initiative (RGGI).
As House Bill 2025 could harm Pennsylvania’s ability to enact economy-friendly carbon-reduction policies, we encourage you to consider the negative repercussions of passing this legislation.
Ceres’ members include hundreds of institutional investors and large businesses with operations in Pennsylvania and across the U.S.
This includes a coalition of 58 major companies that support smart climate and energy policies at the state and federal levels called the BICEP Network (Business for Innovative Climate and Energy Policy).
Leading companies and investors recognize that carbon pollution, which contributes to climate change, poses significant risks across all sectors of the economy.
As such, major investors are taking decisive action to reduce climate-related risks in their investment portfolios, and businesses are making science-based greenhouse gas emissions reductions across their operations and calling for smart policies to transition to a low-carbon economy.
Influential economic actors also recognize the many economic benefits and jobs that arise from addressing climate pollution and transitioning to cleaner sources of energy.
Market-based carbon reduction policies such as RGGI are particularly attractive solutions to the private sector because they often deliver emissions reductions in the most economically-efficient way.
Policies like RGGI leverage the power of the private sector to foster innovative, competitive solutions while providing the policy certainty needed to make low-carbon investments.
This is why last spring, dozens of major businesses and investors-- including oil and gas companies such as BP, Shell and Equinor-- joined Ceres on Capitol Hill to advocate for market-based carbon pricing solutions.
RGGI is successfully helping states across the region reduce carbon emissions, while also creating jobs and growing the local economy.
Since 2009, RGGI has helped states reduce their electricity-sector carbon emissions by more than half.
Meanwhile, over the last ten years, economic growth in RGGI states outpaced the rest of the country while electricity prices decreased, despite price increases in other states.
Time and again, RGGI has surpassed expectations in its efficiency in sending a clear market signal to the private sector to innovate and find cost-effective solutions.
RGGI has also led to significant job creation across the region, thanks to its ability to generate revenue for clean energy jobs and for community economic transition programs.
For these reasons, businesses and investors have been vocal supporters of smart carbon policies such as RGGI.
In November 2019, eighteen major Pennsylvania businesses and institutions submitted a letter in which they encouraged state lawmakers to “enact smart, market-based solutions aimed at reducing carbon pollution.”
Even more recently, in February 2020 major employers such as Mars Inc., Microsoft, and Nestlé applauded lawmakers in Virginia for approving that commonwealth to join RGGI.
As the nation’s fourth-largest emitter of greenhouse gas emissions, Pennsylvania must at one point or another confront the reality that, in order to stay competitive and attractive in the modern economy, it needs to transition away from its reliance on high carbon-emitting energy sources.
This is particularly important as other economically-significant states around the country are already taking decisive action to transition to a low-carbon economy.
Supporting policies that address this problem now can better prepare Pennsylvania for a low-carbon future while prioritizing re-tooling communities that have been traditionally reliant on the fossil fuel economy.
Carbon pricing policies like RGGI can help Pennsylvania achieve all of these goals-- with net economic benefits.
The RGGI program can be particularly beneficial in helping Pennsylvania’s economy build back better and healthier in the service of its citizens in the aftermath of the COVID-19 crisis.
While we support and encourage legislators to take a leadership role in the development of smart carbon reduction policies for the Commonwealth, we are concerned that House Bill 2025 takes an unconstructive approach and sends the wrong signals to the many Pennsylvania businesses who want the Commonwealth to transition to a low-carbon economy.
Given all of the above, we urge legislators to use their actions to signal a greater openmindedness to RGGI.
In the near-term, we encourage you to host and participate in constructive dialogues with constituents and businesses across economic sectors.
There are many major employers outside of the fossil fuel industry (and even a growing number within it) who encourage smart, business-friendly climate policies now so that we may avoid significant economic risks in the near-, medium-, and long-term.
Thank you for your consideration. I would welcome any conversation; please do not hesitate to reach out.
Sincerely,
Brianna Esteves
Manager, State Policy
Click Here for a copy of the letter.
Related Articles:
-- PA Nuclear Energy Group Says HB 2025 A Distraction From Energy Policies That Reduce Carbon Pollution
[Posted: July 7, 2020] PA Environment Digest
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