That would be comparable to taking all passenger vehicles off the road, or Texas and Florida’s annual greenhouse gas emissions combined, according to the analysis.
“This is a really big deal,” Rhodium Group Chairman John Larsen told CNN. “It would be the biggest step the federal government has ever taken to tackle climate change.”
Of the six measures analyzed by the group, Rhodium estimated that a combination of the clean electricity program, tax credits and financing for rural electricity cooperatives would have the greatest impact on US emissions, accounting for up to 715 million tonnes per year.
Rhodium’s analysis found that if utilities hit this minimum increase each year, the power sector would reach a clean share of 73% by 2030, just short of President Joe Biden’s target of 80%.
“There is no reason a public service cannot be paid to be successful,” Larsen told CNN. “If I do better than 4% a year, you could actually get paid even more to do the right thing. I think that between tax credits and [clean electricity program], it is obvious for public services to achieve these objectives. ”
Rhodium has estimated that there is a gap of approximately 1.7 billion to 2.3 billion tonnes between where greenhouse gas emissions will be below the current U.S. trajectory and where they should be to meet Biden’s 2030 target.
“We estimate this could close about half of the gap between where the United States is likely to be and where it needs to be to hit the target,” Larsen told CNN, adding that the gap could narrow if Congress increases its investments further.
Rhodium’s analysis also included a $ 7,500 electric vehicle tax credit, a methane emissions levy and more funding for agriculture and forestry programs that help remove carbon from the atmosphere.