First introduced in 2010 to provide an evaluation that federal agencies can use in conducting cost-benefit analyses of a climate policy, the social cost of carbon (SCC) is a measure of the potential harm in dollars each additional ton of carbon dioxide (CO₂) released into the atmosphere has on the environment (including intensity of storms, sea levels, biodiversity, and agricultural yields) and human health. By monetizing the damage of these emissions, the SCC is intended to help regulators and policymakers evaluate the climate policies that can lead to benefits that exceed the costs of implementing and complying with these policies.

For more information on the SCC, see Article, Understanding the Social Cost of Carbon Metric and the Impact of Court Challenges to this Metric on Energy Project Development and Practice Note, Biden Administration Energy and Climate Change Policies and Regulations: 2022 Tracker.