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The Trump administration has directed agencies to stop estimating the economic impact of climate change when developing policies and regulations.
May 10, 2025, 4:09 p.m. ET
The White House has ordered federal agencies to stop considering the economic damage caused by climate change when writing regulations, except in cases where it is “plainly required” by law.
The directive effectively shelves a powerful tool that has been used for more than two decades by the federal government to weigh the costs and benefits of a particular policy or regulation.
The Biden administration had used the tool to strengthen limits on greenhouse gas emissions from cars, power plants, factories and oil refineries.
Known as the “social cost of carbon,” the metric reflects the estimated damage from global warming, including wildfires, floods and droughts. It affixes a cost to the economy from one ton of carbon dioxide pollution, the main greenhouse gas that is heating the planet.
When considering a regulation or policy to limit carbon pollution, policymakers have weighed the cost to an industry of meeting that requirement against the economic impact of that pollution on society.
During the Obama administration, White House economists calculated the social cost of carbon at $42 a ton. The first Trump administration lowered it to less than $5 a ton. Under the Biden administration, the cost was adjusted for inflation and jumped to $190 per ton.
