This week, Canada revised their fee on carbon to more rapidly increase the price year after year. The Canadian federal government announced that the current $30/ton on greenhouse gasses will increase to $170/ton over the next 10 years – a 566% increase. Carbon fees are based on a foundational economic principle: as things get more expensive, people look for cheaper alternatives. In this case, that means a shift to a clean energy economy. This tells us two things: pricing carbon is efficient, and we’re not moving fast enough.

There’s a carbon pricing proposal in U.S. Congress right now, HR 763: The Energy Innovation and Carbon Dividend Act. Carbon pricing works by placing a fee on fossil fuels at the source. The money collected (short of administration costs) is returned to U.S. households. To keep U.S businesses competitive, a border adjustment is placed on goods exported to and imported from countries that don’t have an equivalent price on carbon.

As the price on carbon increases, the market will get a signal to invest in clean energy. This will create millions of new jobs. Cleaner air also means less deaths each year from air pollution. As you can see, carbon pricing is good for people, the economy, and the planet. It’s the best first step toward tackling climate change and ensuring a habitable future. You can help get this bill passed by joining Citizen’s Climate Lobby (CCL) and by contacting your member of Congress to ask for their support.

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