Carbon Dividends


The Climate Leadership Council’s Carbon Dividends Plan would invest all Americans in a clean energy future, give U.S. businesses policy certainty, and hold other countries accountable. The Carbon Dividends Plan has four pillars:

A gradually rising carbon fee

Charge fossil fuel companies a fee for their carbon emissions. This will cut U.S. carbon emissions in half by 2035.

Carbon dividends for all Americans

Put all the net revenue from the carbon fee back into the pockets of the American people. A family of four will receive about $2,000 a year.

Simplify regulations

Remove redundant carbon regulations so businesses can innovate the fuels and technologies of the future

A border carbon adjustment

Charge a similar fee on foreign goods at the border, encouraging other countries to do their part while strengthening the competitiveness of U.S. manufacturing.

Why It Matters

This solution will work
A nationwide carbon fee is the most powerful tool we have to efficiently slash carbon emissions. It will encourage clean energy investments across the economy. Entrepreneurs will innovate to meet the demand for low-carbon solutions. Carbon emissions will quickly fall, and measures of other air pollutants will improve. This plan also recognizes the global challenge of climate change. Its system of border carbon adjustments will hold other countries accountable to do their part to work with the U.S. to lower global emissions.
This solution is fair
This plan ensures that the clean energy future belongs to everyone. It centers on the most cost-effective way to reduce emissions: a nationwide carbon fee. By returning all the revenue netted from the carbon fee to households, the vast majority of Americans will be financially better off than they are today. This plan will also reinvigorate U.S. manufacturing and create better opportunities for American workers and communities. American industries are some of the world’s most carbon-efficient, but our manufacturers don’t get any credit for their cleaner operations. A system of border carbon adjustments ensures higher-emitting countries are held accountable by charging a fee on imports. More efficient U.S. manufacturers gain a competitive edge at home and abroad, are rewarded for investments in efficiency and innovative solutions.
This solution will last
History has shown that policies enacted with broad support are far more likely to stand the test of time. And to solve climate change, we need a solution that reduces emissions over the long haul. This plan has united an unprecedented coalition of businesses and environmentalists, Republicans and Democrats, and economists from the right and left.
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