The Inflation Reduction Act and Bipartisan Infrastructure Law threw a ton of money into the pot. But to head off shortages of basics, more needs to be done. A stronger regulatory framework is needed to clear the way for the big projects that can help American industry prepare for a future with reduced emissions.
Today’s divisive national politics make progress difficult. The prospect of charging polluters a so-called carbon tax is a no-go for the same crowd on the right that demonizes corporate ESG programs aimed at curbing emissions . What might help encourage these long-term, big-ticket investments? Along with championing a global trading system for carbon emissions, the U.S. could provide financing for projects that advance green goals even if they’re dirty, and create a Superfund-type mechanism to handle the mines, refineries, pipelines and other long-lived assets that are at risk of becoming obsolete as the world decarbonizes.Another big plus would be a framework for measuring emissions at the corporate level.