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“Through cap and invest, we can both clean up our air and create consistent revenue that invests in our communities and puts money back into New Yorkers’ pockets.”
The future of energy affordability in New York is being decided right now, and so far, we’re not impressed. Last year, days away from the expected rollout of proposed regulations for the state’s cap-and-invest program, Gov. Kathy Hochul decided to kick the climate can down the road.
Now, these life-saving regulations remain under bureaucratic lock and key while overburdened communities continue to pay for pollution, climate disasters, and skyrocketing costs with their wallets and health. This summer, as we discuss the first phase of the program, is a moment for bold leadership from the governor. The stakes couldn’t be higher for working-class New Yorkers, communities of color, and anyone who believes that clean air and economic justice go hand in hand.
The cap-and-invest program is simple: require corporate polluters to pay for their emissions and allow the state to invest that money in good-paying jobs that build out an infrastructure of energy efficiency, climate adaptation, public health, and energy affordability for New Yorkers. Currently, New York doesn’t have a tool that reduces our statewide emissions and raises ongoing funding for climate action. Through cap and invest, we can both clean up our air and create consistent revenue that invests in our communities and puts money back into New Yorkers’ pockets.
This revenue can be used to make direct payments to help New Yorkers cut down on consumer costs. A report created in collaboration with Resources for the Future (RFF) and the New York City Environmental Justice Alliance (NYC-EJA) makes one thing clear: We don’t have to choose between climate action and economic justice. Our study shows that many New Yorkers could save money under a cap-trade-and-invest program, especially when payments to New Yorkers are targeted by region and income.
Furthermore, a high price for corporations to pay to pollute yields the greatest savings for many New Yorkers, particularly those in households making less than $200,000 per year. By requiring polluters to pay for the toxins they dump in our air, we can clean up our air and improve public health without increasing costs for everyday New Yorkers. The RFF and NYC-EJA report proves that we can make New York a safe and affordable place to live, but only if we make corporate polluters pay for their emissions and close the loopholes that let them off the hook.
The truth is, we can’t afford to move any slower when it comes to reducing pollution and implementing climate solutions. The climate crisis is here, and New Yorkers are feeling the pain as we see extreme temperatures and weather events. Not to mention, we’ve been paying for the climate crisis while corporations and billionaires destroy our planet and environment for profit.
The Climate Action Council (CAC) and New York State Energy Research and Development Authority estimate that we need a minimum of $10 billion annually to reduce our emissions and adapt to the impacts of a changing climate, with the potential of that number increasing every year.
The costs to address the climate crisis may seem overwhelming, but the savings and benefits of climate action are far greater. Research from the Climate Action Council showed that making immediate climate investments to meet the mandates of the Climate Leadership and Community Protection Act (or the “Climate Act”) would result in net benefits to New York ranging from $80 to $150 billion over 30 years. This, coupled with a reduction in statewide emissions, will help reduce the damage of climate change, saving New York State an estimated $260 billion.
Until Gov. Hochul implements the cap-and-invest program, New Yorkers will continue to pay for higher costs driven by food and water shortages, disease and sickness, climate disasters, deteriorating infrastructure, and fossil fuels. The math is clear despite the preference to hide behind the pretense that there isn’t enough information or available tools to act today.
We must design the program so that money, savings, and health benefits from its implementation go to disadvantaged communities. If the state fails to include measures like banning trading in or near these communities, then New York will be forced to repeat the same environmental injustices as seen in California and risk creating or worsening existing pollution hot spots.
New York policymakers must stand firm. Low-income New Yorkers already pay the price of pollution with their health and medical bills, as asthma rates soar in communities near power plants and highways. They shouldn’t have to pay twice—once with their lungs, and again with their wallets.
The Climate Act, which requires a statewide reduction of pollution, was meant to be a groundbreaking law for climate and justice, and it still can be if it’s actually funded and implemented. Gov. Hochul has a choice: Will she make corporate polluters pay and fight for our right to breathe clean air, or will she keep letting them poison and destroy our communities and charge us more while they’re at it?
She cannot delay any longer. She can reduce our emissions, cut consumer costs, and help with energy affordability today. In the meantime, we must demand that our leaders put people over big polluters and make the transition to a cleaner, healthier, more affordable future for all.
Eddie Bautista is executive director of New York City Environmental Justice Alliance.
