US Senate Democrats are introducing legislation to tax oil and gas majors responsible for carbon emissions to pay for climate disaster costs. The legislators led by Sen. Chris Van Hollen (D-Md) have called for President Biden to be “bold” on climate.
Legislators introduce a bill taxing energy corporations on emissions
The Van Hollen-sponsored Polluters Pay Climate Fund Act will require 25-30 of the US companies responsible for greenhouse gas emissions to pay around $300 billion to a fund for almost ten years. The legislation seeks to make the corporations contribute to the fund for contributing to around 0.05% of global greenhouse gases in the past two decades.
Van Hollen stated, “What we’re proposing today is a simple but powerful idea, it’s the idea that polluters should pay for the messes they cause … and those that pollute the most should pay the most.”
According to the democratic other policies are expected to accompany the measures, including clean energy standards and carbon pricing. Under the bill, oil majors Chevron Corporation (NYSE: CVX), Royal Dutch Shell plc (NYSE: RDS), and ExxonMobil (NYSE: XOM) will be taxed around $5-$6 billion each year. Possible use of the fund includes the development of climate-resilient infrastructures in disadvantaged and communities of color.
Banks accused of doing little about sustainable energy
As the efforts for clean energy gather momentum, banks have been accused of funding dirty energy companies despite pledging to pull back in years to come. Despite the pressure to do away from operations contributing to global warming, the largest US banks still support fossil fuel companies.
Interesting, stopping investment in fossil fuel firms is only part of the story of having a sustainable future. More needs to be done regarding investment in infrastructure and tech that will support the adoption of clean energy.
Major US banks, including Bank of America and JPMorgan Chase, have committed to sustainable energy projects. As a result, major fund closing and capital investments in the climate technology sector have surged this year. Notably, there is a surge in the number of investors (creditors) with gas and oil lists that they won’t lend to.