Cost of Carbon Analysis for Future Energy Policies

White House Sidesteps Key Climate Metric: The Social Cost of Carbon

Carbon emissions come with a price — but the White House isn’t using it. The Biden administration recently approved major fossil fuel projects without applying the government’s own estimate for the social cost of carbon (SCC). That figure helps calculate the true impact of emissions — including damage to health, property, crops, and ecosystems.

What Is the Social Cost of Carbon?

The SCC is a dollar value assigned to the damage caused by each ton of carbon dioxide released into the atmosphere. It reflects how climate change affects public health, weather extremes, sea-level rise, and more. In theory, it should guide decisions on energy, infrastructure, and pollution. But when it’s ignored, polluting industries get a pass — and taxpayers bear the long-term costs.

The White House neglects the cost of carbon on a gray, overcast day.  A U.S. flag flying above and a fountain in front, viewed from the South Lawn.

A Surprising Omission

Even though the Biden administration raised the SCC to $51 per ton (from the Trump-era $1 estimate), agencies neglected to apply it in key environmental reviews. This includes massive oil and gas projects. I mean for the exact developments that pump CO₂ into the atmosphere. Experts say this move undermines both transparency and the administration’s own climate goals.

Critics Speak Out

Climate advocates, economists, and legal scholars are frustrated. Groups like the Environmental Defense Fund and Natural Resources Defense Council argue that skipping the SCC weakens environmental analysis and shortchanges communities. Especially those already hit hardest by climate change. “If we don’t count the cost, we pretend it’s free,” one advocate said.

The Stakes Are High

With extreme heat, floods, and wildfires on the rise, leaving carbon’s true cost out of federal decisions feels out of step. Not applying the SCC doesn’t make the damage go away — it just shifts the burden to future generations.

The Takeaway

The social cost of carbon is more than a number. That’s because it’s a signal. Moreover, ignoring it sends the wrong one. If we’re serious about climate action, let’s be on every decision. I mean especially the big ones. Hence, we must factor in the real costs of carbon.

Sources: USEPA and

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