US Department of Energy Secretary Samuel Bodman Tuesday assured business
leaders in London that the US would not "impose tariffs and create divisive
trade wars" to reduce global greenhouse gas emissions blamed for global
warming.

Bodman said any scheme to reduce GHG emissions must be "internationally
accepted" and based on "free trade." That means establishing a "rules-based
framework that all countries must abide by, including those in the developing
world," Bodman added.

Bodman did not directly mention in his speech any global-warming bills
that are pending in the US Congress, but his references to "tariffs" and
"trade wars" may be construed as criticism of a bill that currently has the
best chance of passing through the US Senate.

That bill (S. 2191)--sponsored by Senators Joseph Lieberman, a
Connecticut Independent, and Virginia Republican John Warner--has a provision
that would seek to force China, India and other countries to reduce their GHG
emissions by imposing certain conditions on trade with the US.

Specifically, the bill would require nations with no GHG control programs
to buy credits to offset emissions created in manufacturing products that they
want to export to the US. Some international trade experts have questioned the
provision, saying it could constitute an illegal tariff under the World Trade
Organization rules.

Two weeks ago, another lawmaker crafting a different global-warming
bill--US House of Representatives member Rick Boucher, a Virginia
Democrat--said his measure would have "trade consequences" for nations that
decline to cap their GHG emissions, but at a speech at the Business Roundtable
in Washington he said the provision would pass the WTO muster, although he did
not provide detail on why that would be the case.

Bodman, meanwhile, renewed his call for development of "breakthrough"
technologies to address global warming.

"The bottom line is this: The world needs a safe, reliable, clean,
affordable and diverse energy supply," he said. "This is a global challenge,
perhaps one of the most significant of our time."

--Brian Hansen, brian_hansen@platts.com