Carbon pricing plans should reduce emissions – not eliminate jobs | Guest Opinion

As lawmakers in Olympia debate the merits of various carbon pricing plans, we ask that they do no harm in the creation of these new policies.

That means finding a way to protect the environment and retain family-wage jobs in Washington state.

It all comes down to acting locally but competing globally. Take for instance the Kraft pulp and paper mill located in Wallula. This facility — and other pulp and paper manufacturers in our state — are what are referred to as Energy-Intensive and Trade-Exposed (EITE). As highly trade-exposed facilities, these mills and their employees compete for market share and capital investment with other mills both nationally and internationally and with mills in other jurisdictions that do not have Washington’s already low carbon footprint, and other stringent environmental protections.

New proposals in Olympia, like SB 5126 — Cap-and-Trade — seek to cap greenhouse gas emissions through carbon pricing regulation. If EITE sector industries, including pulp and paper mills, are not adequately and intentionally protected from legislation like SB 5126, these new regulations will have a disastrous effect for state manufacturers, their employees and families, the local economy, and the environment. Let us explain.

Mills in the Pacific Northwest employ union-backed, essential workers, and make essential everyday products — from corrugated cardboard boxes to food packaging to toilet paper.

When legislators look to impose new policies to reduce greenhouse gas emissions at the state level that significantly increase the regulatory costs compared to other state jurisdictions, Washington mills will instantly become competitively disadvantaged. As highly trade-exposed facilities, these mills cannot simply pass those same costs onto consumers when the same products, manufactured by national and global competitors, are readily available at lower prices. That means Washington family wage jobs — and whole industries — are placed at risk of being lost in our state.

When carbon pricing restrictions are imposed on already efficient, comparatively low-carbon emitting sectors like Washington’s pulp and paper mills, there will be disastrous unintended environmental consequences. Specifically, to remain competitive, local mills will be incentivized to shift production to higher carbon-emitting states or countries. Pulp and paper products made in Washington with carbonfree hydropower, carbon-neutral biomass, natural gas, wind, and solar power will be made in other jurisdictions – like China – with coal and a much higher carbon footprint.

This concept known as greenhouse gas “leakage”, pushes the greenhouse gas emissions we’re seeking to reduce or eliminate into higher emitting jurisdictions, thereby increasing global emissions, all while risking our own economic competitiveness and important union-backed, family wage jobs.

It should be noted that EITE industries, like Washington’s pulp and paper mills, have proactively taken steps to reduce their emissions, investing millions into technology that achieves clean and efficient operations. In fact, in Washington state, EITE industries account for only 5 percent of all carbon emissions. As a result, Washington state is home to some of the most environmentally responsible manufacturing in the world compared to their national and global competitors.

It is estimated that state-level carbon pricing will put approximately 6,000 well-paying, family-wage, predominately union-backed jobs at risk at Washington pulp and paper mills alone. This is precisely why one-size-fits-all carbon pricing is not the right solution. Many of these jobs are in communities where unemployment is already high and there are few, if any comparable local employment opportunities. When you factor the impacts of COVID-19 into the already challenging job market, the loss of EITE jobs would compound employment prospects for displaced workers, especially in rural communities.

This doesn’t have to be an either/or situation: either we help the environment, or we lose jobs. We must do both, protect the environment and protect family wage jobs. That is why legislators must ensure adequate protections are put in place for EITE businesses and sectors in legislation like SB 5126.

Washington is already one of the greenest states in the country when it comes to greenhouse gas emissions. Our paper mills are among the most environmentally responsible actors, both domestically and internationally. We, in the industry, take great pride in doing our part to reduce carbon emissions. However, we strongly object to public policy that will push Washington manufacturing to other states and to other countries with fewer protections that will ultimately increases global carbon emissions.

History clearly shows that once Washington EITE jobs and industries are gone they will never be restored. We need carbon reduction policies that reduce global emissions and retain family-wage jobs in Washington.

This story was originally published April 6, 2021 at 1:20 PM with the headline "Carbon pricing plans should reduce emissions – not eliminate jobs | Guest Opinion."