The Obama administration has increased the “social cost” of carbon emissions in federal regulations, a move that could lay the groundwork for new rules on climate change.
The order, handed down by the Office of Management and Budget (OMB) with little fanfare, bumps the so-called social cost of carbon — a monetized estimate of health, property and environmental damage — to $35 per metric ton, up from $21.
The directive requires all federal agencies, including the Environmental Protection Agency, to use the new figure when crafting regulations.
A spokeswoman for the OMB said the change reflects broad consensus in industry and government.
“These updated values are well within the range of mainstream estimates; indeed, similar estimates are used by other governments, international institutions, and major corporations,” said OMB spokeswoman Ari Isaacman Astles.
Regulatory experts said the change could help the White House move forward with controversial rules that would limit emissions from power plants. By raising the social cost of carbon, the administration has likely ensured that the estimated benefits of those regulations would be greater, they said.