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

Published

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

Hyundai launches new EV grant program offering up to $5,000 in savings

Published

2 hours ago

July 25, 2025

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Hyundai launches new EV grant program offering up to ,000 in savings

Hyundai is the latest carmaker offering significant discounts on electric vehicles in the UK. The Hyundai Electric Grant program offers up to £3,750 ($5,000) off popular EVs, including the Inster EV, IONIQ 5, and new IONIQ 9. And it’s not just the UK, Hyundai is launching deals in nearly every market.

Hyundai launches new EV grant program in the UK

Starting today, July 25, all Hyundai electric vehicles in the UK are eligible for the program. Hyundai’s EV grant offers buyers £3,750 ($5,000) off the 2025 Inster, the brand’s new entry-level electric SUV.

The savings are available across Hyundai’s entire EV lineup, with £1,500 ($2,000) in savings on the IONIQ 5, Kona Electric, and IONIQ 9.

“As the electric vehicle landscape continues to evolve, it is important that customers have complete clarity, choice and compelling value when making the switch to electric,” Ashley Andrew, president of Hyundai and Genesis UK, said on Friday.

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After launching the Inster EV and its flagship IONIQ 9 this year, Hyundai now offers a complete lineup ranging from entry-level to a three-row electric SUV.

The EV grant is available immediately across Hyundai’s UK dealer network, including for retail, Hyundai Affinity, or Contract Hire purchases.

Until August 31, buyers can score an extra £500 ($671) off the Inster EV and Kona Electric through Hyundai’s Electrifying Summer promo.

Hyundai is also offering 24-hour test drives, allowing customers to try it before making a purchase. The Korean automaker follows other brands, including MG and Leapmotor, to offer discounts ahead of the UK’s new EV grant program.

According to new registration data from Jato, Hyundai was the 10th best-selling EV brand in Europe in the first half of 2025.

The Inster EV, priced from £23,505 ($31,500), cracked the top 20 most registered EVs last month with over 3,300 units sold. Hyundai Motor, including Kia’s share of the EV market, rose from 12.6% to 19.1% in H1 2025.

Hyundai is offering significant savings on electric vehicles not just in the UK, but essentially in every market, including the US, right now.

Hyundai-IONIQ-5 — 2025 Hyundai IONIQ 5 at a Tesla Supercharger (Source: Hyundai)

Following the launch of an aggressive sales promotion this summer, Hyundai is now offering 0% interest for 60 months on its top-selling SUVs. The savings are available on new EV models, including the 2025 IONIQ 5 and 2026 IONIQ 9 (see our review of it).

The 2025 Hyundai IONIQ 5, which now offers up to 318 miles of range and a NACS port for charging at Tesla Superchargers, is listed for lease at just $179 per month. That’s about the lowest national offer for an electric SUV currently available.

Both the IONIQ 5 and IONIQ 9 are built at Hyundai’s new EV plant in Georgia, so they still qualify for the $7,500 US tax credit. However, that’s set to end at the end of September.

Ready to try one out for yourself? You can use our links below to find offers on Hyundai’s electric vehicles in your area.

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Environment

Tesla is about to launch ‘Robotaxi’ in Bay Area, but with someone in the driver’s seat

Published

2 hours ago

July 25, 2025

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Tesla is about to launch 'Robotaxi' in Bay Area, but with someone in the driver's seat

Tesla is stripping all meaning from the word “Robotaxi” as it plans to expand its supposedly autonomous ride-hailing program to the Bay Area as soon as this weekend, albeit with a driver in the driver’s seat.

As we have often highlighted over the last few months, Tesla’s ‘Robotaxi’ launch is purely about optics.

Tesla is not yet ready to launch a level 4 autonomous driving system, but Elon Musk needs Tesla to achieve a win in self-driving after years of failed promises.

They decided to launch “Robotaxi”, a ride-hailing service in Austin, Texas, but due to the automaker not being ready to deploy level 4 autonomy, it had to add a safety monitor in the passenger front seat at all times.

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That passenger has access to controls capable of stopping the vehicle at all times, which is similar to how Tesla’s consumer version of ‘Supervised Full Self-Driving’ works. In short, it’s basically ‘Tesla Supervised Full Self-Driving’, but with the supervisor moving from the driver’s seat to the front passenger’s seat.

Those supervisors have already had dozens of interventions over just 7,000 miles in Austin over the last month.

Now, Tesla is looking to launch its ‘Robotaxi’ in the Bay Area. Rumors are that it could be as soon as this weekend.

However, during Tesla’s earnings call this week, Tesla’s head of self-driving, Ashok Elluswamy, confirmed that it will be with “a person in the driver’s seat”:

“The next is the San Francisco Bay Area. We are working with the government to get approval here, and meanwhile, we will launch the service with a person in the driver’s seat just to expedite while we wait for regulatory approval.”

The Tesla executive claims that Tesla is “waiting for regulatory approval”, but last we heard, Tesla has yet to apply for the proper permits to commercially operate autonomous vehicles in California.

Electrek’s Take

To be clear, this is no different than an Uber driver who owns a Tesla with FSD picking you up at the airport. Tesla is looking to launch an Uber service in the Bay Area with employees at the wheel who use FSD, and it is going to call it ‘Robotaxi’.

It’s no more than a distraction from the fact that Tesla can’t deliver a level 4 autonomous driving system.

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Environment

Nexamp found a faster way to build solar – it did the utility’s job, too

Published

18 hours ago

July 24, 2025

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Nexamp found a faster way to build solar – it did the utility's job, too

Nexamp just pulled off something that could speed up clean energy deployment across the US – and potentially lower costs for everyone. The Boston-based solar developer just finished building three new solar farms in Maine and Massachusetts. But instead of waiting on the utility to handle all the grid hookup work, Nexamp did it themselves.

That might not sound groundbreaking at first, but in the world of renewable energy, it’s a pretty big deal. Normally, utilities are in charge of any grid upgrades and interconnection work needed before a new solar project can start sending power to homes and businesses. That process can be very slow and expensive.

Nexamp’s new approach, called “self-performance,” flips the script. It lets developers take on some of that work, like ordering and installing equipment, so they don’t have to sit around waiting for the utility to schedule it. That means solar farms can get online faster, which gets clean power to the grid sooner and keeps project costs in check.

The three projects that kicked off this self-performance effort are:

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Hartland Solar – 1.2 MW DC in Hartland, ME
Barre Road Solar – 1.3 MW DC in New Braintree, MA
Summit Farm Solar – 2.6 MW DC, also in New Braintree

Nexamp didn’t go rogue – they worked closely with Central Maine Power and National Grid on the interconnection designs, safety standards, and technical specs. But by handling the actual procurement and construction, Nexamp had way more control over cost, timing, and supply chain headaches.

“Self-performance lets us take much greater control over interconnection procurement and construction,” said Daniel Passarello, Nexamp’s lead consulting engineer for grid integration. “We can move much of the interconnection work forward at the same time as the solar farm build instead of treating them as separate. That helps us bring projects online faster and stay closer to budget.”

It also helps that Nexamp already has solid relationships with suppliers. Instead of going through multiple layers of utility procurement, they can go straight to the source, fast.

That kind of streamlining is exactly what the solar industry needs right now. Community solar is booming – as of the end of 2024, nearly 8 gigawatts of it have been installed across the US, according to the the Solar Energy Industries Association (SEIA), and that number is expected to almost double by 2030. But bottlenecks in the interconnection process slow things down.

Sara Birmingham, VP of state affairs at SEIA, called Nexamp’s move a step in the right direction. “We must modernize and streamline the interconnection process to keep pace with fast-growing demand,” she said. “Self-performance is one of several innovative approaches that can accelerate project timelines and lower costs, which benefits all ratepayers.”

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