Any Carbon Policy Must Meet the Equity Test

Revenue Investment is a Key Component to Socially Just Climate Policy

Puget Sound Sage advocates for a strong carbon pricing policy that re-invests revenue from a carbon-pricing mechanism (whether it be a cap and trade or a carbon tax) into targeted communities that need it the most. A cap and trade or a carbon tax offer both upsides and downsides for the environment and equity, which you can learn more about here. In Sage’s opinion, the merits of each policy comes down to how well it is implemented and whether or not there is a targeted approach to supporting people of color and people with lower incomes.

A targeted investment approach would create massive opportunity to:

  • Identify which communities are the most in need
  • Target those investments to communities who are impacted first and worst by climate change and environmental degradation

We looked towards California’s policy SB 535 – which first commissioned a study to understand environmental hotspots in California. Based on the findings it then had community and policy experts work together to reinvest 25% of the revenue into smart investments that simultaneously address poverty and environmental challenges. This policy has resulted in the largest investment in environmental justice communities in the country. California has already moved millions of dollars to create green jobs, build affordable housing, build up transit centers and invest in clean trucks (which is vital for the health of communities living along heavily polluted truck routes).

How do we evaluate any carbon pricing policy? We start with equity and look towards investing in communities with the most need – but we should be clear about what equity means. This chart can be helpful to explain the difference.

equity-vs-equality

Does Carbon WA’s proposal meet the equity measure?

Carbon WA’s proposal is to tax carbon and use the revenues to 1) reduce the sales tax by 1%, 2) give tax breaks to specific industries, and 3) put the rest towards funding a working families tax rebate. On the surface, this seems like good policy. But let’s examine their approach through a social justice lens.

Ultimately, the core concept to Carbon WA’s carbon tax proposal is “revenue neutrality,” where we greatly increase tax on one thing (carbon) but reduce taxes on other things (general sales). The problem with this is what the revenue neutral approach is about giving everyone the same via a tax reduction. Even at a 1% lower sales tax, this policy solution does not address the severe regressivity of our state’s tax policy – people with lower income pay more in taxes in Washington than any state in the country.

To their credit, Carbon WA included a portion of the revenue to the Working Families Tax Rebate a good policy similar to the Earned Income Tax Credit that gives working families larger refunds at tax return time. However, this solution does not take into account the fact that some communities live in closer proximity to environmental degradation and thus bear worse consequences. In addition, it leaves out large swaths of people with low incomes: specifically, people who lack documents to work in this country, single people, and people on fixed incomes.

For the future of our planet and for the people already experiencing the consequences of climate change, any policy must reduce carbon pollution. A successful and socially just policy will include revenue investments that create good jobs, prepare our region for climate change and incorporate the needs and input of communities of color and communities with lower incomes. We believe Carbon WA’s revenue neutral approach falls short of this measure.

Four Ways to Incorporate Justice into the Environmental Movement

By Nicole Vallestero Keenan, Puget Sound Sage and Ellicott Dandy, One America

Climate change is one of the biggest threats to social, economic and racial equity. Our jobs, our health, and the communities where we live are threatened by climate change, and we can expect more severe heat waves, flooding, extreme weather events, food scarcity, and the increased spread of disease to have the most direct impact on low-income communities and people of color.  Although it is often overlooked, addressing environmental inequality is an essential component to moving strong policies that make our environment healthier for everyone. Why? In part it’s about doing what’s right, but it’s also necessary.

Research, by environmental justice organization Green for All, shows that people of color are more likely to care deeply about the environment. As in the rest of the nation, the number of people of color living in Washington State is growing. Census data shows that population growth rates among black, Latino, and API communities outpaces the growth of white communities, and the trend is predicted to continue. As the environmental movement considers strong policies for healthier people and a healthier planet, it must craft policies that serve the interests of the people most impacted, and the people whose voting base is growing.

Even though there is a growing population of people of color in Washington, who are likely to support environmental sustainability, a recent report from Green 2.0, finds that organizations at the forefront of the environmental movement are ill-equipped to engage and empower people of color in their movement. Green 2.0 finds environmental government agencies, foundations, and NGOs are often guilty of unconscious bias, apathy in addressing diversity, and of inadvertently maintaining a “green ceiling” such that the percentage of people of color employees has not grown in decades.

In this context, many of Washington’s environmental organizations are searching for ways reverse the trend found by Green 2.0 and better engage with communities of color. One key element to better engage with communities of color is to incorporate social justice into their work.

Here are four ways mainstream environmental organizations can better incorporate justice into the environmental movement:

  1. Re-think communications: As long-time environmental activist Gail Swanson says: “You can’t enlist all humanity if you only speak to half of the population.” Communications experts in environmental organizations know they have to change the way they talk about the environment to be more relevant to people’s every-day lives, and many have taken important steps to talk about health, safety and jobs. However, communications is just one step to increasing engagement with communities of color, and will often come naturally if an organization applies a social justice lens to their work.
  1. Train staff to apply a critical racial lens: Trainings that teach staff to understand and address racial inequities are important, but it’s even more crucial for staff to learn how to and practice applying this awareness to their work.

    How does this policy affect communities of color or low income communities? What barriers inhibit communities of color from fully engaging in this program? Has my organization sought out and included people of color in crafting this program or policy?

    The process of asking and seeking answers to these questions can open pathways to deep collaborations with people of color and community based organizations.

  1. Actively seek out the expertise of community-based organizations: No need to reinvent the wheel! Fortunately for environmental organizations, there are people who have been doing incredible environmental justice work in communities of color for years. The mainstream environmental community can and should seek them out and work to support their programs and policy agendas. They should incorporate their input in policy design with the understanding that the policy’s success depends on local expertise of the problem and its possible solutions. Many environmental groups have already begun doing this work, and we encourage strong and socially just partnerships.
  1. Promote and hire people of color into management positions: The Green 2.0 report finds that the few people of color employed by the environmental organizations and agencies studied tend not to hold leadership positions, with the exception of the “diversity manager” role. Even genuine attempts to include people of color in the environmental movement, may be misguided nonetheless. Ensuring people of color have institutional power in environmental organizations is critical for diversifying the environmental movement. This means recruiting people of color to the board and to management-level positions, which means they must expand beyond established networks. When people in charge of hiring are from the communities their organization hopes to engage, more people from these communities are more likely to join the team.