The US and Action on Climate Change

The US is currently the second biggest emitter of greenhouse gases in the world and one of the highest ranked countries in terms of per capita emissions. Along with other major economies, it will have to cut emissions much more sharply if the UN Framework Convention on Climate Change (UNFCCC) agreement to seek a 2°C ceiling to global warming is to be fulfilled. Fortunately, there are some grounds for guarded optimism. Despite the weakness of federal policy on climate change, the emissions intensity of the economy has fallen remarkably. New actions are being taken at federal, state and local levels so that, in the words of one eminent academic observer,“the reality surpasses the rhetoric” (Stavins, 2012). At the international level, the US is becoming less of an outlier. It had a pivotal role in helping to shape the Copenhagen Accord in 2009. The approach endorsed at Durban two years later increased emphasis on the need for developing countries to participate in emissions control, fitting well with the US position that large emerging-market economies, as well as developed countries, must take action. However, the distributional consequences across countries of action to stop climate change could still undermine the chances of a global agreement. Domestically, climate change policies need more coherence and ambition, but are being held back by widespread political opposition. The introduction of a single carbon price across the US economy would improve the cost-effectiveness of climate change mitigation, speed the introduction of clean energy technology, reduce investor risks and create a level playing field across states.