Monday, July 19, 2010

Cap-and-Trade Legislation Faces Opposition

Senators John Kerry and Joe Lieberman's new draft bill focuses on capping greenhouse gas pollution from electric power utilities.

In a cap-and-trade market, businesses that cut pollution could sell credits to companies that do not. The current version of the climate/energy bill before the Senate scales back cap-and-trade from a broad approach to a narrow focus emphasizing utilities.

Ten eastern US states have capped emissions from utilities for two years under a plan called the Regional Greenhouse Gas Initiative. Some have suggested this plan could serve as a template for a national plan, but not everyone is in agreement.

The American Chemistry Council is opposed to utility-first legislation and states like West Virginia, which use coal, are against it because they would pay more for electricity. Caps are also opposed by states like Ohio that are reliant on energy-intensive manufacturing industries.

On Wednesday July 14 2010, two US business groups announced their opposition to the latest version of the climate change draft.

Others see cap-and-trade as a tremendous opportunity that can drive the recovery. Several publicly traded power companies such as Duke Energy have backed the idea of utility first carbon caps, saying that such a plan would give them cause to invest billions of dollars in renewable sources of energy like wind and solar.

Although President Obma is very clear about putting a price on carbon, a new national survey commissioned by the Institute for Energy Research found that 70 percent of Americans oppose new energy taxes that will drive up domestic energy costs.

Some Senators are seeking a bill that will not impose carbon controls on utilities, however, any further dilution of cap-and-trade legislation will render it meaningless.

Related Posts
US Cap-and-Trade: What and Why
US Cap-and-Trade: Business
US Cap-and-Trade: Solutions
US Cap-and-Trade: Positioning Your Business
US Cap-and-Trade Implications for Business
Small Business Can Save Cap-and-Trade
Small Business' Silence on US Cap-and-trade Legislation
Helping Small Business Accept US Cap-and-Trade
US Cap-and-Trade: Obstacles and Solutions
Cap-and-trade in Ontario and Quebec
Protecting the Planet from Corporate Influence
The Cost of a Global Deal on Climate Change
Green Blueprint
Green Capitalism
Creative Capitalism: Market-Based Social Change

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