To the Editor:

Inflation is on everyone’s minds. As the Senate works to advance climate policies to protect Americans from the mounting costs of wildfires, droughts and extreme heat, some are pointing to inflation as a reason to delay action. The truth is, the issues are interconnected.

Extreme weather, made worse by the increasing amount of CO2 emissions warming our planet, played a pivotal role in the growth of 2021 inflation. In addition to causing billions of dollars in direct losses to U.S. food and forestry producers, extreme weather events impact raw materials supply all around the globe, which leads to price increases at home.

The good news is that action on climate helps the U.S. economy, not just in the far-off future, but now.

For example, Europe is rapidly moving towards a carbon border adjustment mechanism. CBAMs place an extra charge on carbon-intensive goods (potentially including fuels) imported from countries without carbon emissions reduction programs. If the U.S. hasn’t implemented carbon pricing when the European CBAM goes into effect, then U.S. manufacturing will be disadvantaged.

If the U.S. implements carbon pricing and our own CBAM, the economic effects are threefold: we keep our goods competitive in foreign markets where CBAMs are in place, we hold other countries accountable for their CO2 emissions, and we promote domestic manufacturing. The U.S. manufacturing, agricultural and energy sectors are already less carbon-intensive than many of our competitors. We should ensure that producers are rewarded for that.

Carbon pricing can also help put money directly into American pockets, in the form of a carbon cashback. Some proposed carbon pricing bills, such as the Energy Innovation and Carbon Dividend Act, have provisions to return collected revenues directly to the American people, to shield them from rising energy prices.

Carbon pricing is also supported by experts. The majority of U.S. economists, including 28 Nobel Laureate economists and four former Fed chairs, support carbon pricing. Even the American Petroleum Institute has drafted a proposal urging Congress to adopt a carbon-fee-and-rebate policy.

Reach out to your Congress member to tell them to take action that supports the economy and protects us against the rising costs of climate change. To learn more about legislation that implements market-based solutions and puts money in American pockets, visit www.energyinnovationact.org.

Charlotte Reith

Bowling Green