President Trump will soon cancel the Obama-era policy that demanded federal agencies account for the “social cost of carbon” when drafting new regulations, says Reuters. Under Obama, agency officials had to quantify the economic damage of an activity, like coal mining or oil drilling, based on its contribution to climate change.
“Under rules put in by place by former President Barack Obama, the current cost of carbon in policy decisions is $36 per ton, which will rise to $50 by 2030,” says Reuters. “The Trump order would direct regulators to use a “discount rate” that would dramatically reduce, or eliminate, that cost.”
One source told Reuters that the executive order, which could come as soon as next week, might be a way to phase out carbon calculations entirely in drafting new policies.
Meanwhile, two anonymous sources told Reuters that Trump has reached out to “publicly traded fossil fuel companies” to ask their opinion on whether the U.S. should pull out of the Paris climate change treaty. Signed by nearly 200 countries worldwide, the pact seeks to reduce global emissions. Under Obama, the U.S. agreed to lower its emissions between 26 and 28 percent below 2005 levels by 2025. During his campaign, Trump promised to pull out of the accord.
“The sources, who asked not to be named because they are not authorized to speak publicly on the subject, said many of the companies reached by the administration had said they would prefer the United States remain in the pact, but would also support reducing U.S. commitments in the deal,” explained Reuters, adding that Exxon Mobil, ConocoPhillips, and the World Coal Association have all expressed support for the treaty.