March 14 -- Two business groups recently
released reports urging Congress to resist calls for carbon dioxide
emissions caps.
The reports came out at the same time an environmental think tank
issued a report outlining climate changes that it attributes to
greenhouse gas emissions. The reports also coincided with a report by
congressional researchers advising members of the Senate Energy
Committee about options for imposing a carbon dioxide cap-and-trade
program.
The National Association of Manufacturers issued a white paper March
13 in which it cautioned the Senate Environment Committee against taking
any steps toward capping carbon dioxide emissions, stating that such
caps would "likely undermine the U.S. economy."
The manufacturing trade association argues that mandatory caps on
carbon dioxide emissions would increase the prices of gasoline and
diesel fuel by 8 percent to 9 percent by 2010.
"Mandatory caps would be detrimental to manufacturers by driving up
the cost of doing business," said Keith McCoy, vice president for energy
and resource policy for the manufacturers association.
The association is asking Congress to allow time for provisions in
the Energy Policy Act of 2005 to encourage development of advanced
energy technologies that would benefit energy conservation and carbon
dioxide emissions.
"We should not even consider carbon mandates when the science is
uncertain and recent policies addressing carbon intensity havenīt even
been implemented yet," McCoy said.
One day later, the U.S. Chamber of Commerce released a statement
calling on Congress to consider all alternative approaches before
considering any legislative and regulatory action to reduce greenhouse
gas emissions.
"We need common-sense solutions to this problem that wonīt destroy
our economy," said William Kovacs, Chamber vice president for
environmental issues. "Any measures that fail to address long-term
economic impact and the emergence of technological innovation will miss
the mark and ultimately cause more harm than good."
Kovacsī comments accompanied the release of a Chamber of Commerce
report that raised concerns about a paper issued by the Congressional
Budget Office on March 13. The Congressional Budget Office report
outlined options the Senate would need to consider if it decides to
implement a carbon dioxide cap-and-trade program. The report was
prepared at the request of Sen. Jeff Bingaman, D-N.M., the ranking
member of the Senate Energy and Natural Resources Committee.
The Congressional Budget Office paper raised questions about which
parties would be regulated by a carbon dioxide cap-and-trade program and
whether parties should be allowed to sell allowances or whether they
should be given away.
Also on March 13, the World Resources Institute issued a report that
concludes that human-induced climate change is already having
quantifiable effects on the environment.
"The world may well have moved past a key physical tipping point," a
WRI statement issued with the report states. "The science makes it clear
that additional climate impacts will result even if emissions of
greenhouse gases are halted immediately."
The WRI concludes that in addition to preventing additional climate
change, there is an urgent need for efforts to adapt to the impacts
already occurring.
All of the reports are available online. The Congressional Budget
Office report is at
www.cbo.gov/ftpdocs/70xx/doc7068/03-13-CommentsOnWhitePaper.pdf ;
the WRI report is at
http://climate.wri.org/climatescience-pub-4175.html ; the NAM report
to the Energy Committee is at
www.nam.org/s_nam/sec.asp?CID=43&DID=41 ; and the Chamber of
Commerce report is at
www.uschamber.com/issues/comments/060313climatechange.htm .