What a month this is turning out to be! The Austrian coalition government is planning a Carbon fee and dividend tax, the Guardian has reported a large survey by Demos which shows more support than expected for more carbon taxation in the UK and the Royal Society of Arts is supporting a ‘carbon dividend’ as well as climate assemblies, a green transition fund and street by street net zero plans. The RSA based it’s report on the findings of a survey of Conservative voters which found that they are keener on going further to combat climate change than the government supposes.
Perhaps most exciting is the news that Senate Democrats in the US are likely to include a carbon fee with cashback to households in the budget reconciliation bill currently being drafted in Congress. Campaigners for Climate Income in the US have had to combat the political mantra that there can be no higher taxes and Biden’s green policy up to now has resolutely steered clear of carbon pricing. It is therefore very encouraging to hear that at a White House press briefing recently, Press Secretary Jen Psaki was asked if a carbon tax would violate the president’s campaign pledge to not raise taxes on all but the very wealthy. Psaki replied, “Polluter fees on corporations do not conflict with the $400,000 pledge.” Here is a very good (short) ‘Op Ed’ on what a carbon tax could achieve in the US. The current crisis in the UK shows the need for a fair but effective policy to price out fossil fuels here too.