Memorandum from the Interagency Working Group on Social Cost of Greenhouse Gases

The Interagency Working Group on Social Cost of Greenhouse Gases published a memo directing agencies to “use their professional judgment to determine which estimates of the SC-GHG reflect the best available evidence, are most appropriate for particular analytical contexts, and best facilitate sound decision-making.”

On December 22, 2023, the Interagency Working Group on Social Cost of Greenhouse Gases (IWG) — co-chaired by the Office of Science and Technology Policy, Office of Management and Budget, and Council of Economic Advisers — published a memo directing agencies to “use their professional judgment to determine which estimates of the SC-GHG reflect the best available evidence, are most appropriate for particular analytical contexts, and best facilitate sound decision-making.” Available SC-GHGs for them to draw from include the IWG’s interim estimates ($51 per ton for the social cost of CO2 and $1500 per ton for the social cost of methane) and the estimates EPA made in December 2023 in support of its power plant rulemaking ($190 per ton for the social cost of CO2, and $1600 per ton for the social cost of methane).