Climate Leadership Council

Climate Leadership Council. The Climate Leadership Council is a Washington, D.C.-based nonprofit organization and policy institute founded in 2017. It advocates for a national carbon tax and carbon dividend framework as its central solution for climate change mitigation in the United States. The organization is known for building a broad coalition of support from across the political spectrum, including industry leaders, environmental organizations, and prominent Republican statesmen.

History and founding

The organization was launched in 2017 by a founding board that included entrepreneur Ted Halstead and former U.S. Secretaries of State George P. Shultz and James A. Baker III. Its creation was motivated by a desire to craft a bipartisan climate solution following the U.S. withdrawal from the Paris Agreement. Early support came from major corporations like ExxonMobil, BP, and General Motors, as well as environmental groups such as the Nature Conservancy and Conservation International. The founding principles were formally outlined in a 2017 op-ed in the Wall Street Journal titled "The Conservative Case for Carbon Dividends," which articulated its core carbon tax and dividend proposal.

Policy proposals

Its primary policy is the **Carbon Dividends Plan**, which proposes a gradually rising fee on carbon dioxide emissions. The revenue from this carbon tax would be returned directly to American citizens as equal quarterly carbon dividend payments, often framed as a "climate dividend." The plan also calls for the rollback of certain EPA regulations, such as the Clean Power Plan, arguing the carbon price would make them redundant. A key feature is a border carbon adjustment, which would impose fees on carbon-intensive imports from nations without comparable climate policies, protecting U.S. competitiveness and encouraging global adoption. The framework is designed to be revenue-neutral and is often compared to earlier cap-and-trade proposals like the Waxman-Markey Bill.

Membership and structure

The organization operates through a board of directors and an expanding coalition of supporters known as the **CEO Climate Dialogue** and the **Americans for Carbon Dividends** advocacy campaign. Its membership is notably eclectic, including energy giants like Shell and TotalEnergies, manufacturing leaders such as Procter & Gamble and United Airlines, and environmental NGOs like the World Resources Institute. The advisory council features prominent figures from both parties, including former Federal Reserve chairs like Janet Yellen and Ben Bernanke, as well as senators like John Kerry and the late John McCain. Leadership has transitioned to CEO Greg Bertelsen following the passing of founder Ted Halstead.

Reception and criticism

The plan has received praise from centrist think tanks like the Brookings Institution and editorial boards including the New York Times for its market-based approach and potential for bipartisan appeal. However, it has faced significant criticism from both the left and right. Some progressives, including supporters of the Green New Deal, argue the carbon fee is too low and object to the regulatory rollbacks, preferring direct investment through initiatives like the Inflation Reduction Act. Many conservatives and groups like the Americans for Prosperity oppose any new carbon tax on principle. Environmental justice advocates have also criticized the dividend model for potentially inadequately addressing pollution hotspots in communities near facilities like oil refineries in the Gulf Coast region.

Impact and influence

While its flagship policy has not been enacted by the U.S. Congress, it has significantly shifted the debate on climate change economics. Its framework has influenced legislative proposals, including bills sponsored by Senators Chris Coons and Mitt Romney, and elements have been debated in hearings of the House Ways and Means Committee. The concept of a border carbon adjustment has gained traction in policy discussions in the European Union and among members of the G7. The council's work has also helped maintain a dialogue on climate action within the Republican Party, providing an alternative to outright denialism and keeping a price-based mechanism on the legislative agenda alongside other strategies like carbon capture and storage incentives.