Today’s Axios newsletter contains a notable reminder of the stakes of the climate change debate happening today. Senate Minority leader Chuck Schumer said that a climate change bill would be “one of the first things we put on the floor” if Democrats gain the majority. Axios adds this note:
Why it matters: Political windows for major bills open rarely. The comments on a press call Friday sound like a commitment to spend political capital on climate if given the chance.
In order to truly capitalize on this window of opportunity, climate change advocates have their work cut out for them. If action is to be taken during this critical time, there will need to be a set of policy tools close at hand and a plan for how to make use of them.
Hopeful signs are emerging from many quarters. Senate climate champions Ed Markey and Chris Van Hollen have introduced the National Climate Bank Act, and have suggested that it could serve as a concrete implementation mechanism for the Green New Deal. House leaders are undertaking their own processes to solicit climate change policy ideas, including via the Select Committee on the Climate Crisis. And Democratic presidential candidates have rolled out detailed climate policy proposals, many of which have included bold plans for public investment through a Climate Bank or similar mechanisms.
As Congressional leaders and advocates continue the policy discussion, they should keep the big picture in view. Any comprehensive climate strategy will need to set forth an aggressive vision and timeline for decarbonizing the economy, and use all levers and mechanisms available. While no single policy represents a silver bullet, many can be complementary to one another.
Market mechanisms like tax credits and carbon pricing can send price signals to developers and investors, while public investment through a Climate Bank can connect dollars to projects. The establishment of Climate Bank will enable a faster energy transition, remove barriers to private investment (mobilizing up to $1 trillion), and achieve this without shifting costs to consumers. This makes it a key part of a larger comprehensive strategy.