Congressman’s ‘Tradeable Performance Standard Act’ Eradicates 40% of US Greenhouse Gas Emissions by 2040
Washington, D.C. —Today U.S. Representative Sean Casten (IL-06) introduced the Tradeable Performance Standard Act, which would eliminate emissions from the electricity and industrial thermal energy sectors by 2040. In 2018, those sectors combined to emit roughly 2.7 billion tons of greenhouse gases – roughly 40% of all US emissions.
Casten said, "After a year when we've seen wildfires rage across the West, a derecho tear through Illinois, and a polar vortex leave communities in Texas and Mississippi without power or potable water for weeks, the science is crystal clear: to save lives and avoid economic catastrophe, we've got to hit net-zero emissions economy-wide by 2050. That means we've got to do something about the two sectors emitting nearly half of total greenhouse gas emissions—2.7 billion tons of CO2 in 2018 alone. By requiring the EPA to establish industry-specific standards in terms of emissions per unit of energy and requiring energy producers who emit more than the standard pay someone who emits less, my bill will eradicate 40% of all US greenhouse gas emissions by 2040 and create a powerful incentive for investment in cleaner, cheaper American energy."
Elizabeth Gore, Senior Vice President, Political Affairs, Environmental Defense Fund said, "Curbing climate pollution from the electric and industrial sectors is essential to tackling the climate crisis. Rep. Casten's innovative proposal will not only cut climate pollution from these sectors, it will help spur investment in clean energy jobs and reduce harmful air pollution. We are encouraged by Rep. Casten's continued commitment to advancing clean energy, and we hope this bill will embolden other Members of Congress to craft ambitious climate solutions that benefit our economy and our health"
Nader Sobhani, Climate Policy Associate at the Niskanen Center said, "We congratulate Representative Casten on the well-thought out and novel Tradable Performance Standard Act (TPS). Finding the fastest path to decarbonizing the industrial and power sectors is key to decarbonizing our economy. This proposal innovatively combines aspects of carbon pricing and emissions standards, allowing market actors to choose the best path to reducing their CO2 footprint. We look forward to working with Representative Casten, and his colleagues, to develop ambitious and achievable climate action in the 117th Congress."
The Tradeable Performance Standard Act decarbonizes the electric and industrial thermal energy sectors by creating carbon intensity standards for each sector that decline each year. Energy producers who emit more than the standard would have to purchase emission allowances from those who emit less – and the dirtiest producers will have to purchase more emissions than any others. Over the next 20 years, two of the three heaviest emitting sectors would see their emissions completely eradicated.
According to the Intergovernmental Panel on Climate Change (IPCC), the world has already experienced 1°C of warming relative to pre-industrial levels. Without action, Earth is likely to reach 1.5°C of warming by midcentury, and accelerate towards irreversible damage to our species and planet after that. This proposal represents a necessary step in preventing the worst impacts of the climate crisis from coming to fruition.