Cap-and-trade returns: NY plans to force big oil to ‘invest’ in ‘green’ by paying for emissions
In her State of the State address on Tuesday, New York Democratic Gov. Kathy Hochul is expected to unveil her “Cap & Invest” anti-pollution program. This initiative aims to reduce emissions by imposing levies on companies for their greenhouse gas outputs and then using that money to fund green initiatives such as retrofitting buildings to run on clean electric power.
The concept of a “cap” in this program refers to the limit on greenhouse gas emissions that the state imposes. This cap is projected to decrease annually in order to meet climate change prevention goals. Companies can participate in an auction where they bid on pollution-weight-based “allowances,” with the proceeds being invested in green projects by the government.
Critics of the program, like the nonpartisan group Upstate United, warn that New York drivers could see a significant increase in gasoline prices as a result of this proposal. The current average gas price in New York is $3.14 per gallon, which is comparable to surrounding states but could see an increase if the Cap & Invest plan is implemented.
State Sen. Tom O’Mara, R-Elmira, who represents a district on the Marcellus oil shale formation, criticized the program as a “radical climate mandate” that will drive up costs for businesses and residents in New York. He believes that such policies will only worsen the state’s affordability crisis and drive more families and employers out of the state.
Assembly Minority Leader William Barclay echoed these sentiments, stating that the governor’s plan is out of touch with New Yorkers and will only make energy costs more expensive for consumers. He emphasized the importance of ensuring that New Yorkers have access to reliable and affordable energy sources, rather than burdening them with additional costs to fund environmental initiatives.
The push for Cap & Invest comes as part of New York’s commitment to achieving net-zero emissions by 2050, as outlined in a 2019 law. This initiative follows a trend in the state of restricting energy exploration, including a ban on hydraulic fracturing for natural gas that has been in place since Gov. David Paterson’s “timeout” in 2010.
Overall, the Cap & Invest program is aimed at reducing emissions and investing in green projects, but critics warn that it could lead to increased costs for consumers and businesses in New York. As Gov. Hochul prepares to introduce this initiative in her address, the debate over the economic impact of such policies continues to unfold.
