Geoff Burmeister, energy policy and regulatory expert at PA Consulting, shares his point of view regarding a US carbon tax with S&P Global Platts.
The article notes that taxing carbon dioxide emissions is the major US energy policy closest to receiving bipartisan support, but probably not under the current administration.
Electricity accounted for 73% of CO2 emissions from the commercial sector in 2017, 68% from the residential sector and 32% from the industrial sector, according to the US Energy Information Administration. Placing a tax on CO2 emission is seen by many as a way to reduce emissions levels as part of a climate change mitigation strategy. However, a federal carbon tax would be unlikely to come out of the Trump administration and could be a challenge under a new future administration.
Geoff says: “In general, I agree a moderate carbon tax is closer than it has been in recent years and that among the federal carbon and clean energy proposals a moderate tax has the most support. But that does not mean that it is close to being adopted.”
How can investors capitalize on the global trends in energy markets?