The Unexpected Climate Policy That Could Tackle Both National Debt and China

Democrats want to address climate change. Republicans want to tackle our national debt. Both sides are concerned about China.

There’s a way to deal with all three issues: putting a price on carbon.

Europe is already ahead of the game. This month, the E.U. expanded the reach of its longstanding domestic carbon pricing system by instituting a carbon price at their border, creating a first-ever global incentive for other countries to charge polluters for their carbon dioxide emissions. This comes as adoption of carbon prices is steadily increasing around the world — especially among U.S. allies and trading partners — with nearly 25 percent of global emissions now covered.

Despite all this, and the fact that policy leaders have long considered carbon pricing an essential solution in the fight against climate change, the U.S. has not yet moved to impose its own carbon price, largely due to a historically challenging political landscape. This has led some to write off the idea altogether. However, the potential for carbon pricing to address two other major U.S. challenges — our soaring national debt, and an increasingly aggressive China — in addition to the climate, could create a new and unique alignment of interests that make the politics finally click in Washington.