Purpose
- Investigates the causes of economic imbalances.
- Investigates the effect of the global financial system and/or the monetary system in fostering a sustainable economy.
- Investigates causes tending to destroy or impair the free-market system.
- Explores and develops market-based solutions.
Summary
Based on the premise that some form of carbon pricing is essential to limiting greenhouse gas emissions to tolerable levels, the project organizes dialogues, public forums, and special projects on carbon pricing policies to build understanding, alliances, and fresh perspectives. The central effort of the project is the Carbon Pricing Dialogues (CPD), a forum for discussions between a broad spectrum of stakeholders on potential pricing mechanisms and strategies. Participants represent environmental, business, labor, social justice, religious, and other issue-oriented advocacy organizations, as well as both conservative and progressive think tanks.
Description
During the course of the grant, we have hosted several events bringing together stakeholders as part of our efforts to discuss creative carbon pricing approaches and grow the network of policy professionals active in this space. On June 1, economists from the Research Institute of Innovative Technology for the Earth (RITE) in Japan visited RFF to provide a deep dive on the emerging contours of Japan’s Emissions Trading System. RFF arranged for the CPD network to participate in a Chatham House Rule presentation including an update on the program’s development. RITE works closely with the government, so it was a well-informed perspective. The event was more academic than the typical meeting for our network, and the CPD Steering Committee agreed that such events should not replace our regular events, but are a valuable complement to our usual programming and an example of the synergies we continue to realize with the new home for CPD at RFF.
On June 2, we held another event that was a direct response to Steering Committee input, on the new political landscape we find ourselves in. We must account for shifting eddies and currents as we chart a pathway forward, and the speakers were helpful in doing that. The panelists brought perspectives on how Congress, government scientists, and the civil service are functioning after a year and a half of significant changes by the second Trump Administration. A common theme was that opportunities still exist, but they require adaptability and reframing to seize.
On September 29, CPD held a Chatham House Rule dialogue focused on providing updates from US states with carbon prices implemented in the midst of an affordability crisis. We heard from four experts who gave compelling updates on opportunities for Virginia to address affordability now that it has rejoined the Regional Greenhouse Gas Initiative (RGGI), how implementation by RGGI states following the third program review is progressing, the political cut-and-thrust behind California’s recent cap-and-invest rulemaking, and how Colorado and Oregon are facing pressures that may lead them towards adoption of their own cap-and-invest programs.
On October 2, we held a Chatham House Rule dialogue featuring a former Republican member of Congress, interviewed by a former Republican staffer for the House Select Committee on the Climate Crisis. This Committee was formed in the 116th Congress and operated through the 117th Congress. The member shared his thoughts on the upcoming midterm election, in which energy costs are playing a significant role in campaigns nationwide. He highlighted races to watch and emphasized the importance of stable policy, particularly in the energy and environmental space. The insights shared underlined the value of maintaining a diverse network with membership spanning the political divide.
We have also continued stewarding the carbon pricing lunch series and held CPD Steering Committee meetings. We look forward to providing further updates at the end of the grant period.
Purpose
1) Causes of economic imbalances: We focus on policies to correct the economic distortions resulting from the world's most significant market failure—the free dumping of carbon pollution into Earth's atmosphere and oceans.
2) The global financial system’s effect in fostering a sustainable economy: While focusing on US legislation, we discuss ways to link with global pricing systems and foster global economic sustainability.
3) Threats to the free-market system: A robust economic consensus suggests the need to price in the externalities associated with fossil fuel burning. Unless these costs are integrated into energy markets, the costs of climate change threaten to undermine global economic stability.
4) Market-based solutions: Policies to price carbon pollution will take advantage of existing energy markets to correct price signals in the use of fossil fuels that presently ignore the social costs of carbon, and unfairly favor fossil fuels over low-carbon alternatives.
Scope
The project’s work is primarily focused on U.S. national, regional, and state audiences, including policymakers as well as corporate audiences with interests in both domestic and global markets. The project draws on lessons from both domestic U.S. and international efforts to advance carbon pricing policies.
Information Dissemination
The Carbon Pricing Dialogues program is still settling into its new home at RFF. Part of this transition has involved transferring blog posts to the RFF website that include key ideas for our program. These blogs either outline our approach to carbon pricing or reflect ideas that help us frame the topics for our dialogues, bring in new participants, and challenge long-time participants with new ideas. Since our adoption by RFF in October 2025, seven such blogs have been updated and transferred, and two original blogs have been posted. The new blogs have also helped summarize key ideas discussed in our confidential dialogues, making them available to the wider public while respecting the confidentiality guaranteed by the Chatham House Rule under which those ideas were shared.
One of our original blog posts explored polling data on Americans’ support of climate-related trade policy. The surveys found that Americans are generally supportive of using trade agreements to reduce greenhouse gas emissions, even though the level of support has dropped over the past year. The images here depict US public opinion, broken down by party affiliation, on whether greenhouse gas emissions should be a priority in trade agreements, whether it is important for the US to follow trade agreements, and whether the US should place a tariff on high-emissions goods.
In addition to this pathway for disseminating information, since arriving at RFF we have adopted the practice of posting brief summaries of the ideas discussed in our dialogues on a dedicated CPD page on RFF’s website:https://www.rff.org/topics/carbon-pricing/rff-carbon-pricing-dialogues. This is an improvement in our pre-RFF general practice that was enabled by cooperation with RFF’s dedicated communications staff.
Project Linkhttps://www.rff.org/topics/carbon-pricing/rff-carbon-pricing-dialogues
Amount Approved$40,000.00
on 2/22/2026
(Check sent: 2/24/2026)
