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Court upholds Obama's social cost of carbon accounting for federal regulations

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The Obama Administration has won a significant victory for its use of a social cost metric to determine the impacts of new environmental and efficiency rules, in a unanimous circuit court decision that appeared to leave opponents with little room to maneuver. The U.S. Environmental Protection Agency (EPA) and other federal agencies use the social cost of carbon (SCCO2) to estimate the climate benefits of rulemakings. The cost currently sits at $36 per metric ton. While opponents of the rule had questioned its use and the process to develop standards, the 7th U.S. Circuit Court of Appeals ruled Monday the government acted appropriately in using the metric to set new refrigeration standards.