Carbon Cap Means Less $ For Iran April 18, 2010 : 5:03 PM

Another example of how solving the climate crisis can help increase our security here at home and create a more stable world:

“A strong cap on carbon would significantly cut the flow of petrodollars to Iran’s hostile regime, a Wonk Room analysis shows. The economic and political strength of Iran’s dictatorship is a threat to the national security of the United States and the world, and its nuclear ambitions threaten to destabilize the Middle East. Yesterday, diplomats from “six world powers have met for the first time to discuss imposing new sanctions on Iran for its failure to suspend work on its controversial nuclear program,” but negotiators have not yet figured how to achieve President Barack Obama’s goal of being “consistent and steady in applying international pressure.”

"Iran, “which holds the world’s second-biggest oil and gas reserves and supplies about 4.5 percent of the world’s oil production,” uses its oil power “as a strategic asset.” Even though oil is “one of history’s Big Levers concerning Iran,” the idea of gas sanctions to control Iran’s oil income is not likely to succeed, and could even backfire."

"One mechanism to control the flow of petrodollars to Iran — whose oil production is worth $120 billion a year at current prices — is for the United States to control its appetite for oil. Based on an economic analysis by the Massachusetts Institute of Technology of a carbon cap that reduces global warming pollution by 80 percent by 2050, the Wonk Room has found that Iran would lose approximately $1.8 trillion worth of oil revenues over the next forty years — over $100 million a day."