Revisiting The Green New Deal 5 Years Later

Source: John Oliver on Last Week Tonight, Episode 11, Season 6 "Green New Deal", HBO

Since the Green New Deal’s introduction, the U.S. has faced over 50 major climate-related disasters from 2019 to 2023, including hurricanes, floods, and wildfires, resulting in hundreds of deaths and billions in damages, according to the National Oceanic and Atmospheric Administration (NOAA). These events highlight the pressing need for climate-focused policies, reinforcing the GND’s core message.

Recent studies indicate that human-induced climate change has increased the wind strength of Atlantic hurricanes by 18 miles per hour over the past six years, elevating many storms by an entire category and resulting in more extensive damage.

The financial toll of these disasters is substantial. Between 2019 and 2023, the United States experienced 102 billion-dollar weather and climate disasters, with total costs amounting to $617.5 billion.

The escalating frequency and severity of these climate-related disasters underscore the urgent need for comprehensive strategies to mitigate climate change and enhance resilience against its impacts.

The Green New Deal: A Vision for Transformation or a Polarizing Proposal?

The Green New Deal (GND), introduced in 2019, set forth an ambitious plan to combat climate change and address economic inequality in the United States. Championed by Representative Alexandria Ocasio-Cortez and Senator Ed Markey, the GND aimed to reshape the U.S. economy with a focus on sustainability and social justice. While it never became law, the proposal continues to influence policy and spark critical debates about the nation’s future.

Source: John Oliver on Last Week Tonight, Episode 11, Season 6 "Green New Deal", HBO

Ambitions of the Green New Deal

• Transitioning to 100% renewable energy by 2030.

• Creating millions of well-paying, sustainable jobs.

• Ensuring economic security and establishing social safety nets.

• Promoting clean air, water, and climate resilience.

This vision intertwined environmental sustainability with economic equity, aiming to address systemic challenges while preparing for a greener future.

Critiques and Challenges

Source: John Oliver on Last Week Tonight, Episode 11, Season 6 "Green New Deal", HBO

Despite its aspirations, the GND faced significant criticism for its lack of detail and clear implementation strategies. Critics argued that it was more of a visionary statement than a workable plan, leaving questions about feasibility and funding unanswered. Some estimates placed its potential cost in the trillions, leading Senate Majority Leader Mitch McConnell to call it a “radical, top-down, socialist makeover.”

Public Reaction: Support and Skepticism

Supporters hailed the GND as a necessary step to confront the dual crises of climate change and economic disparity. Environmentalist Bill McKibben described it as “a vision of a country that works for everyone.” Conversely, detractors viewed it as overly ambitious and economically impractical, arguing it could disrupt industries and burden taxpayers.

What Is Carbon Pricing?

Source: John Oliver on Last Week Tonight, Episode 11, Season 6 "Green New Deal", HBO

Carbon pricing is an environmental policy tool that assigns a monetary cost to carbon emissions, incentivizing businesses and individuals to reduce their greenhouse gas output. By internalizing the external costs of carbon pollution, it encourages the adoption of cleaner technologies and energy efficiency. Proponents argue that carbon pricing is an effective mechanism to mitigate climate change, as it leverages market forces to drive emission reductions.

For instance, Sweden’s carbon tax, implemented in 1991, has contributed to a 25% reduction in greenhouse gas emissions while the economy grew by 75%.  Similarly, British Columbia’s carbon tax, introduced in 2008, led to a 5-15% decrease in fuel consumption without harming economic growth.  

Critics contend that carbon pricing can disproportionately impact low-income households by increasing energy costs, potentially exacerbating economic inequality. Additionally, there are concerns about the competitiveness of industries in regions with carbon pricing compared to those without such measures.

Despite these challenges, evidence from countries like Sweden and Canada demonstrates that well-designed carbon pricing mechanisms can effectively reduce emissions while supporting economic growth.

The Cost Of Inaction Vs. Investing In Our Future

The cost of not addressing climate change in the U.S. is projected to far exceed the investment required for policies like the Green New Deal. Here’s a comparison:

Costs of Inaction on Climate Change

Economic Impact:

• The U.S. experienced 102 billion-dollar weather and climate disasters from 2019 to 2023, costing $617.5 billion in damages. (NOAA)

• Without significant intervention, climate-related damages could reduce U.S. GDP by 10% by 2100, equating to trillions of dollars in lost economic output.

Public Health:

• Rising temperatures and pollution lead to increased healthcare costs due to heat-related illnesses, respiratory diseases, and vector-borne illnesses.

• Extreme heat events could cost $100 billion annually in lost labor productivity.

Infrastructure Loss:

• Flooding and sea-level rise threaten critical infrastructure, costing billions annually to repair or replace.

Costs of Adopting Policies Like the Green New Deal

Initial Investment:

• Estimates for implementing the Green New Deal range from $10-$93 trillion over a decade, depending on the scope of reforms and infrastructure upgrades.

Economic Benefits:

• Investments in renewable energy and efficiency could create millions of jobs while reducing energy costs for consumers.

• Long-term savings include reduced healthcare costs, lower disaster recovery expenses, and increased economic stability.

Global Competitiveness:

• Transitioning to green technologies positions the U.S. as a leader in the global clean energy market, driving innovation and economic growth.

While adopting policies like the Green New Deal requires significant upfront investment, the costs of inaction—measured in economic losses, human lives, and environmental degradation—are far greater. Proactive measures offer long-term savings and opportunities for sustainable development, highlighting the urgency of addressing climate change now.

Inflation Reduction Act (IRA): A Step Forward

Although the GND itself did not pass, its principles have influenced subsequent legislation in the United States. The Inflation Reduction Act (IRA), for example, reflects the GND’s spirit by investing in renewable energy, reducing carbon emissions, and bolstering climate resilience. These measures signify growing bipartisan acknowledgment of the importance of sustainable development.

Beyond The Green New Deal: COP29

While the Green New Deal is domestically focused it shares focus on combating climate change and promoting sustainability with other organizations like the United Nations. The 29th United Nations Climate Change Conference (COP29), held in Baku, Azerbaijan, concluded with several significant outcomes:

1. Climate Finance Agreement: Developed nations committed to providing at least $300 billion annually by 2035 to assist developing countries in combating climate change. This agreement aims to support these nations in transitioning to clean energy and enhancing resilience against climate impacts.

2. Establishment of Carbon Credit Trading Framework: Delegates approved a rulebook for carbon credits, facilitating international trading of carbon offsets. This framework is expected to unlock substantial climate finance, particularly benefiting developing countries.

3. Operationalization of the Loss and Damage Fund: Building on decisions from COP27, COP29 advanced the operationalization of the Loss and Damage Fund, designed to provide financial assistance to nations disproportionately affected by climate change.

4. Debates on Fossil Fuel Phase-Out: Discussions on transitioning away from fossil fuels were prominent, though no definitive agreements were reached. Countries like Saudi Arabia, China, and India expressed reservations, highlighting the complexities of achieving consensus on this issue.

While COP29 achieved progress in climate finance and carbon market mechanisms, challenges remain in addressing fossil fuel dependency and ensuring that financial commitments are met to effectively combat global climate change.

Conclusion

More and more we are accepting as a society that our climate is changing. While we may disagree on what is causing those changes we are now talking more about how to address the issue moving forward. The Green New Deal, while controversial, has shaped the national dialogue on climate change and economic equity. By learning from its strengths and addressing its limitations, policymakers can build a future rooted in innovation, inclusivity, and resilience. The GND’s legacy reminds us that bold visions can inspire meaningful change, even when they don’t immediately materialize.

References

• U.S. House of Representatives, H.Res.109 - Recognizing the duty of the Federal Government to create a Green New Deal.

• McKibben, Bill. “The Green New Deal Is What Realistic Environmental Policy Looks Like.” The New Yorker, 2019.

• NOAA National Centers for Environmental Information (NCEI), U.S. Billion-Dollar Weather and Climate Disasters.

• “Senate Majority Leader Mitch McConnell on the Green New Deal.” The Hill, 2019.

• Associated Press: Climate Change Intensifies Hurricanes by Increasing Wind Strength, Study Finds. Link

• NOAA National Centers for Environmental Information: U.S. Billion-Dollar Weather and Climate Disasters. Link

• Financial Times: Severe Drought Impacts Northeast U.S., Affecting Millions. Link

• Wikipedia: Carbon Tax - Sweden’s Success with Carbon Pricing Link

• Wikipedia: Carbon Tax - British Columbia’s Impact on Fuel Consumption Link

• Politico: New $300 Billion Deal Announced at COP29 Link

• Reuters: Takeaways from COP29 Climate Summit in Azerbaijan Link

• UNFCCC: COP29 Agrees to Triple Public Finance to Developing Countries. Link

• John Oliver on Last Week Tonight, Episode 11, Season 6 "Green New Deal", HBO