Social Cost of Greenhouse Gases
The social cost of greenhouse gases is an estimate of the cost, in dollars, of the damage done by continuous carbon emissions. It is also an estimate of the benefit of any action taken to reduce carbon emissions. Policymakers can use that estimate in their decision making. If a policy measure to reduce excess greenhouse gas emissions costs less than the estimate, then the benefits of the policy are greater than its cost and the policy measure will pay for itself over time.
OMB Interim and Revised Social Cost of Greenhouse Gases
2021-2024
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May 2021
On May 7, 2021, the Office of Management and Budget (OMB) requested comments on the updated social cost of carbon and greenhouse gases (SC-GHG) estimates in “Technical Support Document: Social Cost of Carbon, Methane, and Nitrous Oxide Interim Estimates under Executive Order 13990,” with comments due June 21, 2021. Notice of Availability and Request for Comment on “Technical Support Document: Social Cost of Carbon, Methane, and Nitrous Oxide Interim Estimates Under Executive Order 13990.”
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June 2021
On June 21, 2021, New York Attorney General Letitia James led a coalition of 14 AGs in submitting comments supporting the use of the SC-GHG as a standardized metric for considering and addressing climate impacts caused by GHG emissions. The coalition emphasized that SC-GHG is currently the best available tool for analyzing the costs and benefits of any policy that could affect GHG emissions. The comments also outlined several examples of how states in the coalition already use SC-GHG in policymaking. The comments argue that the current SC-GHG models and values should be immediately used, but urge OMB to soon update the models and values to reflect additional significant climate change-related impacts and how impacts vary across socio-economic and demographic groups and geographic regions.
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February 2022
On February 11, 2022, the U.S. District Court for the Western District of Louisiana issued a preliminary injunction barring federal agencies from using the interim values and enjoining an interagency working group from completing its work developing the SC-GHG values.
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March 2022
On March 16, 2022, the Fifth Circuit stayed the injunction.
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May 2022
On May 10, 2022, New York Attorney General Letitia James led 12 states in filing an amicus brief in the Fifth Circuit supporting the administration.
On May 26, 2022, the Supreme Court denied a request to lift that stay. While the stay was being litigated, challenges to the Social Cost of Greenhouse Gases brought by coalitions of AGs led by Missouri and Louisiana, respectively, were pending in the Eighth and Fifth Circuits.
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June 2022
Similarly, briefing in Missouri v. Biden occurred from December 2021 through March 2022, and the Eighth Circuit heard oral argument on June 16, 2022.
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October 2022
On October 21, 2022, the Eighth Circuit dismissed the Missouri-led petition.
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December 2022
The Fifth Circuit heard oral arguments in Louisiana v. Biden.
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April 2023
The Fifth Circuit dismissed the challenge.
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October 2023
On October 10, 2023, the Supreme Court denied the Missouri-led petition for certiorari, leaving the Eighth Circuit’s dismissal in place.