Every national government in the world knows that burning fossil fuels is a practice that’s killing us. All 197 UNFCCC member countries have either signed or acceded to the Paris Agreement dealing with greenhouse gas emissions. Yet the production of oil and gas continues unabated. The following table shows the production from the largest producers: the U.S., Russia, and Saudi Arabia. The U.S. alone has increased its production by about 55% since 2008
Global warming is the disease. Stopping fossil fuel production is the cure. Reducing production might at least help the patient survive. So why haven’t the producers acted? Because no legislation exists anywhere to force them to act. Nor is such legislation likely to appear anytime soon; politicians the world over dance to the tune of the fossil fuel industry. In the few countries where setting a price on carbon emissions is being tried, the taxes are set too low for the effects to work back to the producers of the fuel.
The fossil fuel industry’s business model is similar to the one used by the drug trade: push the product; saturate the market; keep the users hooked. Direct or indirect political involvement is a given. The equivalent of the drug kingpins are the guys running or controlling the world’s Oil and Gas companies: Exxon, Gazprom, BP, Aramco, Shell, to name a few. The pushers are all the entities that stand to gain from the industry’s continued existence. They range from nation states and oil companies down to the industry’s bottom feeders: bought politicians; co-opted scientists; paid lobbyists; etc. A formidable array.
American Fossil fuel pushers are easy to spot because their statements are obviously pro industry. Sometimes their ideas sound reasonable at first reading. The Climate Leadership Council (CLC) is an example. Its proposal — called the Baker-Shultz Carbon Dividends Plan (aka: the Climate Consensus Solution) — is presented as a sort of prospectus in its 6 page website. The plan is heavy on promotion, light on specifics. Change a few words in it and the thing could pass as a sales pitch, complete with big-name endorsements, for Florida investment property.
According to its website, the CLC is “an international policy institute founded . . . to promote a carbon dividends framework as the most cost-effective, equitable and politically-viable climate solution.” Its plan, the website says, is backed by “3500+ economists, 27 Nobel laureates, all 4 former Fed Chairs, and 15 former Chairs of the Council of Economic Advisers.” 3500+ economists? That’s what it says. The following image identifies the CLC’s founding members.
The CLC plan proposes that polluting industries pay a carbon tax on CO2 emissions, the money to be collected and given back to the American people in the form of dividend cheques. In exchange, the American people would have to agree to: the elimination of certain EPA emissions regulations; repeal of the clean power rule; and the introduction of a new law that would prohibit lawsuits of the sort that are currently plaguing fossil fuel producers. In other words, while the emitters of CO2 (all industries that burn fossil fuel) would pay a carbon tax, the producers of oil and gas, who refine but don’t burn much of the stuff themselves, would not have to pay much of the carbon tax. Instead, they would get to stick around producing more fossil fuel without having to worry about being sued for causing global warming.
Here’s how the creators of this ‘believe it or not’ scheme sum it all up:
“A sensible carbon tax might begin at $40 a ton and increase steadily over time, sending a powerful signal to businesses and consumers, while generating revenue to reward Americans for decreasing their collective carbon footprint.”
Let’s see how that might work: (1) Industry pays carbon taxes. (2) The tax money is collected and distributed to all Americans as a reward (for agreeing not to sue Oil and Gas companies?) (3) Industry raises its prices to recover the tax cost. (4) Americans use their reward money to cover the extra cost of the stuff they buy from industry. At what point in that Mobius Loop does a reduction in fossil fuel use take place? It doesn’t. The thing is a fantasy. But wait. Isn’t it true that carbon taxes work over time to limit the use of fossil fuels? Yes, but not when the taxing system is designed by fossil fuel pushers as is the case with this CLC plan. This plan is about convincing Americans to shut up about global warming so that the oil and gas companies can get on with the business of making money while the planet burns.
Among the CLC founding members shown in the image above, the five oil and gas companies are doubtless fully supportive of the CLC plan. As for the rest, who knows. My guess is that most of them don’t know exactly what they’ve lent their names to. The CLC pitch is misleading. The website prospectus mentions ‘carbon dividends’ 11 times and ‘climate solution’ 8 times. A dividend-generating Climate Solution sounds good. On the other hand, the words, oil, gas, fossil, or fuel, appear only once or not at all in the prospectus. Those are words that remind people of what causes global warming in the first place.
The Climate Leadership Council is headquartered in Washington DC at 1250 Connecticut Ave. NW.