Top U.S. oil trade group drafts carbon tax proposal that could hike pump prices – WSJ

The American Petroleum Institute has drafted a proposal urging Congress to undertake a carbon tax, though some members of the largest U.S. oil business commerce group need to delay motion till after the midterm elections, fearing it might alienate Republican lawmakers, the Wall Road Journal reported this week.

The API proposal requires assessing gasoline wholesalers, energy vegetation and others a tax beginning at $35-$50/ton for carbon dioxide generated by the fossil gasoline they promote or use, with changes for inflation and different elements, in response to a doc reviewed by WSJ.

The draft says a carbon tax is “essentially the most impactful and clear technique to obtain significant progress on the twin objectives of lowering greenhouse fuel emissions whereas concurrently guaranteeing continued financial development.”

Some API members, similar to European-based producers Shell (SHEL) and Equinor (EQNR), reportedly need quick motion, whereas corporations together with Hess (HES), Marathon Petroleum (MPC) and Phillips 66 (PSX) are mentioned to imagine a delay is required to assist the business keep away from political blowback as a result of a carbon tax has turn into unpopular amongst each conservatives and liberals.

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Final month, the SEC unveiled a draft rule that will require corporations to reveal GHGs not simply from their very own services but in addition the emissions generated by companions and end-users exterior the corporate’s direct management.