Vermont Climate Council Report to the General Assembly
January 15, 2025
The Vermont Climate Council's report highlights aggressive greenhouse gas (GHG) reduction mandates under the Vermont Global Warming Solutions Act (GWSA). Vermont businesses may be concerned about certain aspects of these programs, particularly their financial implications.
Over $524 million is allocated for FY25 climate initiatives, primarily funded by federal programs like the Inflation Reduction Act. However, as federal funds decrease post-FY25, the burden of financing could shift to state resources, potentially impacting local businesses through increased taxes or operational costs. The report emphasizes extensive investments in programs such as electric vehicle incentives, heat pump installations, and renewable energy initiatives, which may increase utility and infrastructure expenses for businesses.
Legislation such as the Clean Heat Standard and renewable energy mandates will likely raise operational costs for businesses reliant on fossil fuels or traditional energy sources. The proposed cap-and-invest program, aimed at reducing emissions, might introduce additional compliance costs or fees, particularly for energy-intensive industries.
While the report underscores equity in climate action, businesses in rural areas face heightened challenges in adapting to new energy standards and infrastructure upgrades. The report acknowledges this but provides limited clarity on mitigating these economic pressures for local businesses.
Key concerns include increasing operational costs due to energy transition mandates and regulatory frameworks. The long-term sustainability of funding mechanisms and the likelihood of increased state-level taxes or fees are also concerning, as is insufficient clarity on the economic impact of climate initiatives. Vermonters must ensure their perspectives are incorporated into the evolving climate action plan and that it emphasizes cost-effectiveness and economic feasibility.
Click here to download the report.