DOT Halts Use of Social Cost of Carbon, Reverts to 2003 Circular A-4

On January 29, 2025, the Department of Transportation issued an Order blocking the Department from using social cost of carbon estimates and instead requiring that DOT use the guidance described in OMB’s September 17, 2003 Circular A-4. The Order notes that calculating the social cost of carbon is “marked by logical deficiencies,” has “a poor basis in empirical science,” and lacks “a foundation in legislation.”