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

Toxic Pennsylvania mineland is about to become a big solar farm

Published

5 hours ago

December 13, 2025

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Toxic Pennsylvania mineland is about to become a big solar farm

Pennsylvania mineland solar — Photos of the existing contaminated minelands that will be converted to solar under the recently approved Black Moshannon solar project in Rush Township, Centre County PA (Photo: PennEnvironment)

Rush Township supervisors in Centre County, Pennsylvania, voted this week to greenlight a key permit for the Black Moshannon Solar project – a large solar development that would turn toxic former mineland into a major source of clean power.

If built, the Pennsylvania solar project would generate 265 megawatts of electricity – enough to power about 200,000 homes annually – on nearly 2,000 acres of toxic mineland. Developers deliberately chose the site, as the project is designed to reclaim land left behind by mining and fold environmental cleanup into the solar buildout.

According to project plans, the site would be restored with pollinators and pollinator-friendly ground cover planted beneath the solar panels. Developers have also committed to ongoing water quality and soil testing during construction and operations, along with soil improvements such as applying lime to help neutralize mining-related contamination and support vegetation growth.

Beyond the environmental cleanup, the project is expected to deliver a financial boost to the region. Black Moshannon Solar is projected to generate more than $5 million in tax revenue for the Phillipsburg-Osceola Area School District, along with more than $700,000 in direct tax payments to Centre County.

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Environmental and energy advocates praised the township’s decision. David Masur, executive director of PennEnvironment, called the vote a model for other communities across the state. “We are hopeful that other local government officials across Pennsylvania will follow Rush Township’s lead and implement similar, much-needed solar projects all across the Keystone State.”

Jim Gregory, executive director of the Conservative Energy Network-Pennsylvania, also applauded the approval. “In 40 years, their forward-thinking decisions will be recognized as catalysts for environmental protection, public health improvements, and economic prosperity.”

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Environment

Genesis GV90 leaks as breathtaking ultra-luxe SUV with coach doors [Video]

Published

8 hours ago

December 12, 2025

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Genesis GV90 leaks as breathtaking ultra-luxe SUV with coach doors [Video]

Genesis is gearing up to launch the stunning new flagship SUV. Ahead of its official debut, the GV90 leaked during an internal presentation, revealing our first look at the ultra-luxe electric SUV.

Genesis GV90 leak reveals coach doors and more

The GV90 is arriving as the largest, most luxurious Genesis SUV to date. Based on the Neolun Concept, the new flagship SUV will sit above the GV80 as Genesis expands into new segments.

As Genesis calls it, the “ultra-luxe, state-of-the-art SUV” stole the spotlight at the New York Auto Show last March.

It wasn’t the stunning, reductive design inspired by Korea’s moon-shaped porcelain jars or the premium Royal Indigo and Purple silk materials that caught most people’s attention at the event, but the B-pillarless coach doors.

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The SUV was showcased with Rolls-Royce-like coach doors, offering a new level of luxury for Genesis. Although we’ve seen the GV90 spotted out in public testing a few times now with coach doors, we wondered if they would make it to the production model.

After the full-size SUV reportedly leaked during an internal presentation, it looks like we’ve found our answer. The Genesis GV90 leak reveals two versions: a standard model and a coach-door model.

The leaked images from our friends at ShortsCar offer our first look at the production version in full. Earlier this month, a GV90 prototype was spotted out in public with the coach doors wide open, providing a sneak peek of the interior.

From what was shown, the cabin will feature a similar layout to the concept, with high-end purple and indigo materials. The GV90 was also caught with an all-black interior, which is expected to be the standard version.

A new video from the folks over at HealerTV offers a closer look at the breathtaking interior ahead of its official debut.

The GV90 appears to retain the gear selector located near the top of the steering wheel from the Neolun concept.

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Another report, from TheKoreanCarBlog, confirms the new gear selector after the first interior spy shots surfaced.

From what we’ve seen so far, the GV90 is shaping up to be a near replica of the ultra-luxe Neolun concept. Genesis has yet to announce a launch date for the GV90, but it is expected to make an official debut by the end of the year with sales starting in mid-2026.

Prices and final specs, like driving range, will be revealed closer to launch, but the Genesis GV90 is rumoured to be the first vehicle to ride on Hyundai’s new eM platform.

Hyundai said the new platform will deliver a 50% improvement in range compared to its current E-GMP-based EVs, such as the IONIQ 5. It’s also expected to offer Level 3 autonomous driving as well as other advanced driver assistance system (ADAS) features.

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Environment

Battery storage hits $65/MWh – a tipping point for solar

Published

8 hours ago

December 12, 2025

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Battery storage hits /MWh – a tipping point for solar

solar battery storage — Photo: Enel North America

Turning cheap daytime solar into electricity you can actually use at night just got a lot cheaper. A new analysis from energy think tank Ember shows that utility-scale battery storage costs have fallen to $65 per megawatt-hour (MWh) as of October 2025 in markets outside China and the US. At that level, pairing solar with batteries to deliver power when it’s needed is now economically viable.

Battery storage costs have fallen dramatically over the past two years, and the decline continues. Following a steep decline in 2024, Ember’s analysis indicates that prices continued to fall sharply again in 2025.

The findings are based on real-world data from recent battery and solar-plus-storage auctions in Italy, Saudi Arabia, and India, as well as interviews with active developers across global markets.

According to Ember, the cost of a whole, grid-connected utility-scale battery storage system for long-duration projects (four hours or more) is now about $125 per kilowatt-hour (kWh) as of October 2025. That figure applies to projects outside China and the US. Core battery equipment delivered from China costs around $75/kWh, while installation and grid connection typically add another $50/kWh.

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Those lower upfront costs have pushed down the levelized cost of storage (LCOS) to just $65/MWh. Ember’s calculation reflects real-world assumptions around financing costs, system lifetime, efficiency, and battery degradation.

Cheaper hardware isn’t the only reason storage costs are falling. Longer battery lifetimes, higher efficiencies, and lower financing costs, helped by clearer revenue models such as auctions, have all contributed to the sharp drop in LCOS. Ember has published a live calculator alongside the report, allowing users to estimate LCOS using their own assumptions.

Why this matters comes down to how solar is actually used. Most solar power is generated during the day, so only a portion needs to be stored to make it dispatchable. Ember estimates that if half of daytime solar generation is shifted to nighttime, the $65/MWh storage cost adds about $33/MWh to the cost of solar electricity.

With the global average price of solar at $43/MWh in 2024, adding storage would bring the total cost to about $76/MWh, delivering power in a way that better matches real demand.

As Ember global electricity analyst Kostantsa Rangelova put it, after a 40% drop in battery equipment costs in 2024, the industry is now on track for another major fall in 2025. The economics of battery storage, she said, are “unrecognizable,” and the industry is still adjusting to this new reality.

“Solar is no longer just cheap daytime electricity; now it’s anytime dispatchable electricity. This is a game-changer for countries with fast-growing demand and strong solar resources,” Rangelova added.

Together, solar and battery storage are increasingly emerging as a scalable, secure, and affordable foundation for future power systems.

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