As climate change policy takes shape, will the U.S. ever put a price on carbon?

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4 years ago

November 15, 2021

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A ConocoPhillips refinery in Wilmington, California.

Jonathan Alcorn | Bloomberg | Getty Images

The world needs to reduce carbon levels, and one way is through a carbon tax, a strategy the U.S. has been debating for decades.

With urgent calls to lower greenhouse gas emissions globally, putting a price on carbon was one of the major points of discussion among world leaders at the COP26 conference in Glasgow earlier this month. Consensus on a global carbon price is growing, according to Lord Greg Barker, executive chairman at EN+ and co-chair of the Carbon Pricing Leadership Coalition.

“We need countries to come together to agree on international standards in order to make that big shift to the low carbon economy,” Barker told CNBC in an interview from COP26 last week. ”It would be much better for the world if there was a common carbon price.”

As of now, Barker says there are 69 countries with a carbon price ranging from $1 to $139 per metric ton. The U.S. is not one of them.

Barker told CNBC most economists agree that carbon pricing is the most effective tool there is to transition to a low carbon economy. Carbon pricing shifts the liability for the consequences of climate change to the polluters who are responsible, according to the World Bank.

The Biden administration has outlined $555 billion in spending to confront climate change, though the plan does not address carbon pricing. The bill does include a proposed methane fee incentivizing oil and gas companies to reduce their methane emissions.

A policy to apply a carbon tax was considered as a “plan B” during negotiations over the current climate package, according to the New York Times, after Biden’s clean electricity program was cut from the spending bill last month.

If the U.S. administration can’t get behind the rest of the world on carbon pricing, there are other ways to follow through with the initiative, says Barker, such as regulations, taxes, and emissions trading.

The U.S. has considered carbon import fees and emissions trading that would apply to carbon-intensive products imported to the country. “But carbon import fees only make sense if you have some kind of domestic U.S. carbon policy,” says Richard Newell, president of Resources for the Future, a nonpartisan energy and environment research organization.

He thinks a price on carbon ultimately is achievable as part of U.S. policy as the world grapples with the seriousness of climate change and turns more to financial incentives to reach a low-carbon ecosystem that supports the entire economy.

The Biden administration has a government-wide plan addressing how climate change could affect all sectors of the U.S. economy. The plan was part of a larger agenda to eliminate greenhouse gas emissions in half by 2030 and transition to a net-zero emissions economy.

“There is also going to be a desire to raise revenue to deal with climate change, and for other public purposes, and carbon pricing does all those things,” Newell said. He added that while an economy-wide carbon fee would be the best solution, the administration could start by applying carbon fees to individual sectors.

As the U.S. decarbonizes areas like the power sector and automotive sector, Newell says pressure on government regulation will intensify. “There will be an increasing recognition that to really decarbonize the economy, across all sectors, there is going to be a need for some comprehensive policies,” he said.

“There has been a significant shift across the country in terms of the seriousness with which people and legislators are confronting climate change,” Newell said. ”And that will continue to build beyond the focus on particular sectors.”

The debate over a carbon pricing mechanism right now takes place at a time of rising concerns about inflation and prices at the gas pump that have led to discussions about whether the government should tap the Strategic Petroleum Reserve. The methane fee sparked a debate with some worrying that raising the price of methane would increase electric and heating costs for individual consumers.

Fears of rising prices for low-income households and increasing costs for businesses will need to be considered.

“If politicians are smart and anticipate that they need to compensate, say families that might see their bills go up as a result of a carbon price, you can drive [carbon pricing] through,” Barker said.

In a plan put together by the Climate Leadership Council, a climate advocacy group co-founded by former Secretary of State James Baker, who served in the Bush and Reagan administrations, the idea isn’t to fund government efforts to fight climate. The Climate Leadership Council’s plan outlines that revenue collected from a carbon fee is “to be returned to American households,” said Carlton Carroll, Climate Leadership Council spokesperson.

“Nothing would do more to accelerate innovation and invest all citizens in a clean energy future than an economy-wide carbon fee, with corresponding dividends for the American people,” Carroll said.

The group’s carbon dividends plan cites four major benefits to consumers, including an increase in household disposable income nationwide.

Increasing carbon pricing could be done by taxing greenhouse-gas intensive goods and services, like gasoline, or by taxing carbon emitters individually. The Climate Leadership Council is among groups advocating for pricing carbon-intensive goods as part of a U.S. climate plan, “because it will go further, faster than any other single climate policy intervention,” says Carroll, “while also driving innovation throughout the economy and making families better off financially.”

Historically, there has been some bipartisan support for a carbon tax. The first carbon pricing proposal was introduced in 1990, and there have been several other propositions since. Though none have passed, Newell said the most recent carbon pricing proposal in Biden’s social safety and climate plan piqued the interest of Congress far more than anticipated.

The carbon tax proposed as part of the Build Back Better plan would impose a $20 fee per metric ton of carbon.

“I would say there was a surprisingly strong interest in a carbon fee as part of the ongoing budget reconciliation process,” Newell said.

But Mindy Lubber, CEO of sustainability investment organization Ceres, told CNBC earlier this year that while a carbon tax is one way to prevent the U.S. from being locked into a fossil fuels economy and spur the development of new energy and transportation systems, it has proven controversial in the past, and is a complicated policy tool, making it harder for all sides to reach agreement on, especially in a Senate where the votes are so tight.

A carbon tax could be closer than some people think, says Flannery Winchester, spokeswoman for the progressive Citizens Climate Lobby. ”It has gone from a hopeful idea to one that is on the verge of becoming a reality,” she said.

The White House and 49 senators were on board with a carbon tax, but not the key vote from West Virginia Democratic Senator Joe Manchin.

“But there is clearly a lot more consensus than there’s ever been that this policy is effective for meeting America’s climate goals,” Winchester said.

Environment

Aptera (SEV) shows off assembly line for solar electric ‘car’, updates on battery and testing

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3 hours ago

December 2, 2025

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Aptera (SEV) shows off assembly line for solar electric 'car', updates on battery and testing

Solar electric vehicle startup Aptera Motors released a new update today, giving us a first look at its validation vehicle assembly line, along with progress on battery production and efficiency testing as it moves closer to its goal of low-volume production.

The update comes just weeks after the company began trading on the Nasdaq under the ticker symbol $SEV.

The move, along with a deal to sell some shares, secured access to up to $75 million in financing for Aptera, which was struggling financially.

It enabled Aptera to get busy, and now the company has released an update about its progress over the last few weeks.

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You can watch the full update video here:

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On the personnel front, highlighting an expanded team across engineering, operations, and manufacturing. In the video, several new hires introduced themselves, including directors of supply chain and various engineers, signaling that the company is trying to staff up for the next phase.

But the meat of the update is on the manufacturing floor.

Aptera’s Validation Assembly Line

Steve Fambro, Aptera’s co-CEO, walked us through the facility, which he says is now “buzzing with activity”, with a few interesting time-lapse videos that showed progress.

The company has begun the buildout of its validation vehicle assembly line.

Unlike the hand-assembled prototypes we’ve seen in the past, Aptera says this new setup is designed to operate as a “normal vehicle manufacturing line” with a multi-step process. This includes receiving, inventory, kitting, and progressive installation of vehicle systems at individual stations.

At the heart of this new line is a large-scale precision assembly fixture. This is a critical piece of equipment for Aptera’s unique two-piece composite body structure.

Fambro explained the importance of this fixture:

“It’s a major step forward from the original hand-assembled approach we used on the BinC (Body in Carbon) for the first three validation vehicles. With this new fixture, we can now assemble BinCs with far greater repeatability and tighter control over final geometry.”

We also got a look at the frames, which Aptera says are robust and optimized for weight and strength.

Battery Production and ‘Gemini’ Testing

Another significant update is the battery assembly. Aptera’s battery partner, CTNS, is now on-site building battery modules.

This is the first time CTNS has assembled modules directly in Aptera’s facility. The video shows what look to be clean, precise modules ready for integration. This is a good sign for the supply chain, as the battery pack is often a major bottleneck for EV startups.

On the testing front, Aptera has been conducting internal efficiency evaluations with “Gemini,” its third production-intent vehicle.

The company claims preliminary results from combined drive cycles (high speed, stop-and-go, urban) are “encouraging.” They plan to move to more formal regulatory testing soon with the new and bigger fleet of validation vehicles.

Electrek’s Take

This is a nice progress update from Aptera. I am cautiously starting to get hope that Aptera might end up delivering a few of these vehicles.

Now, let’s be honest, there’s still a lot of work to do. The assembly line that Aptera showed today is clearly a work in progress.

$75 million might sound like a lot, but it’s nothing in the automotive manufacturing industry.

The question remains whether that capital will be enough to get them through this validation phase and into meaningful low-volume production.

As a disclosure, I have a small amount of Aptera shares from the crowdfunding days. I’ve always said I don’t see a significant chance of success, but I wish it, as I love the company’s ethos of efficiency.

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Kia previews the EV2, its most affordable electric vehicle yet [Images]

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4 hours ago

December 2, 2025

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Kia previews the EV2, its most affordable electric vehicle yet [Images]

With its official debut just around the corner, Kia offered a closer look at the EV2. The new electric SUV will be Kia’s smallest, most affordable EV to date.

Kia confirms the EV2 will debut as its most affordable EV

Kia confirmed that the EV2, its new electric B-segment SUV, will debut at the Brussels Motor Show next month. The EV2 will sit below the EV3 as Kia’s new entry-level electric car.

“With the EV2, we reaffirm our commitment to make electric mobility truly accessible to a broader audience – without compromise,” Kia Europe president and CEO, Marc Hedrich, said on Tuesday.

The EV2 will be built at Kia’s sole European manufacturing plant in Zilina, Slovakia, to speed up production and deliveries.

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Designed, developed, and soon to be made in Europe, Kia is confident that the EV2 will play a “pivotal role” in the shift to cleaner, more sustainable travel.

Although it’s the smallest EV in its lineup, Kia promises it won’t feel like it when you’re inside. The interior design is inspired by “a picnic in the city,” according to Kia, with flexible seating and smart storage options that can open up to create a retreat from the busy city life.

Kia has yet to reveal prices or final specs, but given the EV3 is around 4,300 mm (169.3″) long, the EV2 is expected to be slightly shorter at about 4,000 mm (157″).

That’s about the length of the Hyundai Inster (3,825 mm). However, previous spy shots show the EV2 has a more upright stance than the Inster, closer to Kia’s larger SUVs, like the EV9 and EV5.

Kia-EV2-most-affordable-EV — The Kia Concept EV2 at IAA Mobility 2025 in Munich (Source: Kia)

The EV3 is on sale in Europe, starting at about €36,000 ($42,000), so EV2 prices will likely start at closer to €30,000 ($35,000).

Based on Hyundai’s E-GMP platform, the Kia EV3 is available with 58.3 kWh and 81.4 kWh battery options, providing a WLTP range of 410 km (255 miles) and 560 km (348 miles), respectively. The EV2 is likely to be offered with similar battery pack options.

Kia will unveil the EV2 during a press conference on Friday, January 9, 2026, starting at 10:40 am (CET). Check back for more info leading up to the event. We’ll keep you updated with the latest.

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Tesla hints at new camera upgrade, casting more doubt on Full Self-Driving promises

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5 hours ago

December 2, 2025

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Tesla hints at new camera upgrade, casting more doubt on Full Self-Driving promises

Tesla appears to be preparing to introduce yet another new camera sensor to its hardware suite, according to code found in the automaker’s latest firmware. While hardware improvements are generally good news, this latest discovery adds to the mounting evidence that Tesla is continuously moving the goalposts for self-driving, potentially leaving millions of owners with “older” hardware in the dust… again.

The discovery comes from longtime Tesla hacker and researcher @greentheonly, who frequently digs into Tesla’s software updates to find unannounced features and hardware changes.

According to Green, Tesla’s firmware now references a new sensor model: IMX00N.

Looks like Tesla is changing (upgrading?) cameras in (some?) new cars produced.

Where as HW4 to date used exterior cameras with IMX963, now they (might potentially) have something called IMX00N.

This would ostensibly replace or complement the Sony IMX963 sensors currently used in Hardware 4.0 (AI4) vehicles. The IMX963 is the 5-megapixel sensor that replaced the 1.2-megapixel Aptina sensors found in Hardware 3 cars just two years ago.

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We don’t have the specifications for the “IMX00N” yet. It could be a custom Sony SKU for Tesla or a placeholder name for a new image sensor.

Here are the specs comparisons between the camera sensors in HW3 and AI4 Tesla vehicles:

Specification	Hardware 3.0 (HW3)	Hardware 4.0 (AI4)	Technical Implication
Sensor Resolution	1.2 Megapixels (1280 × 960)	~5 Megapixels (2896 × 1876)	4X Data Density. Allows detection of objects at >300m and digital cropping.
Sensor Model	Onsemi AR0136AT	Sony IMX490 (Estimated)	Flagship Automotive Sensor. Simultaneous HDR & LFM.
Color Filter Array	RCCC (Red-Clear-Clear-Clear)	RGGB (Red-Green-Green-Blue)	Semantic Fidelity. True color perception for signs, lights, and road markings.
Dynamic Range	~110 dB	>120 dB (Single Exposure)	Contrast Mastery. No motion artifacts in tunnel exits or night driving.
Data Interface	FPD-Link III (Likely)	GMSL2 or MIPI A-PHY	High Bandwidth. Supports uncompressed 5MP streams at high frame rates.
Front Cameras	3 (Main, Narrow, Wide)	2 (Main, Wide)	Optical Simplification. Digital zoom replaces the physical telephoto lens.
Lens Coating	Standard	Deep Red IR Cut / Anti-Glare	Glare Mitigation. Reduces blinding from headlights and sun.
Heaters	Passive (Waste Heat)	Active Heating Elements	All-Weather Resilience. Rapid defogging and de-icing.
Retrofit	N/A	Impossible for HW3 cars	Fleet Fragmentation. HW3 cars are permanently hardware-limited.

Electrek’s Take

Of course, you would expect Tesla to improve its vehicles, including its sensor suite, gradually. It is a good thing in and of itself.

There are three problems with Tesla updating its hardware suite for autonomous driving:

It promised to all owners since 2016 that their vehicles have all the required hardware to achieve “Full Self-Driving,” and at the time, CEO Elon Musk said that it would mean “unsupervised self-driving.”
It has yet to achieve that, and it promised to offer free hardware retrofit if needed, but it has yet to offer those.
When Tesla launches a new autonomous driving hardware suite, it rapidly puts less effort into software that works with its previous hardware suite.

If the current cameras in HW4 (let alone HW3) are sufficient for Level 4 autonomy, why is Tesla spending resources to integrate a new sensor? The most logical answer is that the current sensors have limitations, whether it’s glare handling, low-light performance, or resolution, that limit the system’s reliability.

If that’s the case, can we expect Tesla to update all the vehicles that are supposed to have the hardware to reach level 4? I wouldn’t bet on it.

CEO Elon Musk already admitted that the HW3 computer won’t support it back in January 2025, almost a year ago, and instead of announcing a solution, Tesla owners were only promised a “mini version” of FSD v14, which itself is not the promised unsupervised self-driving.

At this point, it’s hard to put hope on Tesla doing the right thing here.

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