Paris Agreement: What is at Stake?

The Paris Agreement brings trillions in new investment and provides President Trump with his best opportunity to build a new American economy of durable prosperity. In his Inaugural Address, Trump pledged that the forgotten will no longer be forgotten.

Resource curse: Withdrawing from the Paris Agreement will do nothing to create jobs or raise incomes in coal country. For coal communities, removing global leverage to push investment into a new economy will mean:

  • New investment for new business models will slow down or stop.
  • Boom-and-bust cycle will accelerate as coal fails to compete with natural gas, leaving communities languishing without jobs.
  • Pollution and health costs will both rise dramatically in vulnerable communities.

Mobilizing capital: The old industrial economy has failed to mobilize tens of trillions of dollars in capital:

  • $8.6 trillion tied up in negative yield bonds.
  • $5 trillion in corporate cash holdings.
  • $5 trillion per year in taxpayer-funded global support to high-polluting energy systems that return too little long-term value.

The Paris Agreement is designed very carefully to mobilize all of this untapped capital investment to ensure stronger national economies.

Leverage for leaders: The Supreme Court has already ruled that the administration must act to avoid climate disruption.

  • The Paris Agreement, for the first time, brings all nations into this effort.
  • It specifically requires that climate action be “respectful of national sovereignty, and avoid placing an undue burden on Parties”.
  • Congress and the administration have strong conservative policy options they can use to ensure strong US leadership.

Put simply: The Paris Agreement is leverage for President Trump to succeed in building the new American infrastructure he has promised.

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