A Carrot and Stick Approach to Climate Change

By now we all know that this Congress will do nothing to combat global climate change. And so, what we see happening is that President Obama will use his "pen and phone" strategy to institute both a carrot and stick approach to begin the process of addressing this issue.

On the carrot side, this week the President's American Business Act on Climate Change initiative made a pretty big announcement.

US corporate giants including Apple, Google, Microsoft, Berkshire Hathaway and Goldman Sachs are looking to invest at least $140bn to shrink their carbon footprints, according to media reports...

The committed funds will be utilised to cut emissions, provide financing to environmentally-focused companies, reduce water consumption, and produce 1,600 megawatts of new, renewable energy, which is enough to power nearly 1.3 million homes.

The announcement comes as part of the Obama administration's efforts to bolster private commitments to climate change, ahead of a summit in Paris later in 2015. The White House expects to announce a second round of similar pledges later from more companies, Bloomberg reported.

Take a look at that number: $140,000,000,000. That's not chump change. With more to come.

Tomorrow, President Obama weighs in with the stick.

In the strongest action ever taken in the United States to combat climate change, President Obama will unveil on Monday a set of environmental regulations devised to sharply cut planet-warming greenhouse gas emissions from the nation’s power plants and ultimately transform America’s electricity industry.

The rules are the final, tougher versions of proposed regulations that the Environmental Protection Agency announced in 2012 and 2014. If they withstand the expected legal challenges, the regulations will set in motion sweeping policy changes that could shut down hundreds of coal-fired power plants, freeze construction of new coal plants and create a boom in the production of wind and solar power and other renewable energy sources...

“Climate change is not a problem for another generation, not anymore,” Mr. Obama said in a video posted on Facebook at midnight Saturday. He called the new rules “the biggest, most important step we’ve ever taken to combat climate change.”

Yes, coal companies will scream bloody murder, some red states will refuse to comply, and court challenges will be initiated. But the battle will be joined, culminating with the increasing likelihood of a global climate accord in Paris this December.

As Oliver Willis put it:

The lame duck continues to quack, and it sounds like a roar.