President Donald Trump’s executive order aims to eliminate the “social cost of carbon,” a key metric used to assess the economic damage caused by climate change, shifting financial burdens from polluting industries to the public.
Abrahm Lustgarten reports for ProPublica.
In short:
- The social cost of carbon assigns a price to carbon emissions based on projected economic damages, influencing regulations on pollution and energy efficiency.
- Trump's order dismantles the federal working group that set this cost and directs the U.S. Environmental Protection Agency to reconsider using the measure, aligning with the Heritage Foundation’s policy recommendations.
- Without this metric, industries such as fossil fuels and manufacturing may avoid regulatory costs, while consumers face rising expenses for insurance, energy, and disaster recovery.
Key quote:
“Calling for a high discount rate is basically saying that we should give virtually no weight to our grandchildren and successive generations.”
— Max Sarinsky, regulatory policy director, Institute for Policy Integrity
Why this matters:
Removing the social cost of carbon effectively erases the financial accountability of industries contributing to climate change. Without it, policies meant to curb emissions or improve energy efficiency could lose their economic justification, leading to fewer protections against pollution. Meanwhile, the costs of extreme weather, higher energy bills, and insurance spikes will fall on individuals, deepening economic disparities and public health risks.
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