Dear Climate Media: Don’t Forget the Midwest

Photo credit: Flickr user swisscan

Midwestern governors deserve greater recognition for what they have done to implement a regional cap-and-trade program.

While it is true that states in the Northeast and the West have been leaders in tackling climate change through the design and implementation of mandatory caps on greenhouse gas emissions, the media too often leaves out a similar effort in America’s heartland.

It may be true, as Mr. Broder of the New York Times has suggested, that the Midwest brings specific and legitimate concerns to the debate on a national climate change policy. The suggestion, however, that the Midwest seeks to delay or otherwise weaken efforts to cap and reduce emissions nationwide is directly contradicted by the actions of the region’s governors.

The governors of Illinois, Iowa, Kansas, Michigan, Minnesota and Wisconsin are nearing completion of a process started in November 2007 to design and implement a mandatory cap-and-trade program to reduce emissions across the Midwest.

The Midwestern Accord, like the Western Climate Initiative, is in development and will be operational by 2012. These two markets, along with the Northeast’s Regional Greenhouse Gas Initiative (RGGI), will cover over half the U.S. population.

WRI’s work with the states participating in the Midwestern Greenhouse Gas Reduction Accord has shown they are every bit as serious about reducing emissions as their northeastern and western counterparts.

They expect the introduction of a regional cap to spur energy innovation, create green jobs, and improve their states’ energy and economic security.

Congress can and should learn from these states.

  • Franz Litz, Senior Fellow

    Franz Litz leads WRI’s efforts with US states and US federal agencies as they work together and in parallel to develop programs to reduce greenhouse gas emissions.

3 Comments

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Dear Mr. Litz, I am for a

Dear Mr. Litz, I am for a federal Cap and Trade system. I also grew up in the Detroit metropolitan area. Noting these, what is the best way to respond to an article like this: http://www.detnews.com/apps/pbcs.dll/article?AID=/20090304/O...

Thank you for you time and effort.

Best,

Jeffrey

Hi Jeffrey: let me help with a few of the editorial’s points:

First, the article starts with Obama’s cap-and-trade plan, then quotes Boehner calling the plan a “carbon tax,” and then (because tax is a dirty word politically) proceeds to make arguments why a carbon tax would hurt the economy. So for starters, stick to the facts: Obama didn’t propose a carbon tax. Let’s talk about cap-and-trade.

Doing so will drive up the cost of nearly everything and will amount to a major tax increase for American consumers.

That’s pretty simplistic. There are several studies out there on the economic impact of climate change legislation (here is a brief comparison). You can only reach this dire conclusion if you assume the worst of the worst, as climate opponents often do. Yes, there is probably a cost in the short-term, but the long-term impact is much smaller—and definitely smaller that what we’ll pay in environmental costs if we stick with business as usual.

Michigan will lose as carbon tax money is shifted to states with a greater presence of high-tech and service businesses.

I’m not so sure about that. There’s plenty of analysis out there on how green jobs and industries would benefit from an aggressive cap-and-trade program, including in Michigan. For instance, here’s a map of green jobs in Michigan. The truth is that the industries of the next century will be a lot cleaner and greener than the ones of the last one. If we don’t develop markets for clean technologies, we’ll be losing jobs not to other states, but to China, India and Europe who are already heading in that direction.

Is this really a good time to be talking about a carbon tax? How will such talk impact investment decisions?

Again, we’re talking cap-and-trade, not a tax, and the answer is pretty simple. Investors respond to price signals and opportunities, and would invest in clean technologies. Just look at how the federal production tax credit (PTC) has spurred investment in the wind industry.

And one more thing: if cap-and-trade is so terrible for Michigan, why is Michigan’s own governor working on regional cap-and-trade policies, as Franz points out?

Hope that helps.

Dear Mr. Herzog, Thank you

Dear Mr. Herzog,

Thank you very much for your time, response and for the resources you've posted. I really appreciate it and the World Resources Institute.

All the best,

Jeffrey