Washington (Platts)--12May2008

Presumptive Republican presidential nominee John McCain is scheduled on
Monday to outline a proposal for mandatory reductions in greenhouse gas
emissions that appears similar to a global warming bill that the US Senate is
set to begin debating next month.

In a speech to be given later Monday in Portland, Oregon, the Arizona
senator will say he wants the US to return to 2005 emission levels by
2012 and then reduce emissions to 1990 levels by 2020 and to a level 60% below
that by 2050. President Bush has opposed mandatory GHG caps. McCain's campaign
early on Monday released excerpts of the speech.

In comparison, the leading climate bill (S. 2191) by Senators Joseph
Lieberman, Independent-Connecticut, and John Warner, Republican-Virginia,
would aim to cap GHG emissions at 2005 levels in 2012 and then reduce them 15%
below 2005 levels by 2020 and 70% below 2005 levels by 2050.

McCain has promised that if elected, he will present to Congress a plan
to cap and trade carbon emissions.

According to the excerpts, McCain will promise to coordinate US
GHG-reduction efforts with other countries. He also will say he plans to
return the US to the negotiating table on the Kyoto Protocol, an international
climate treaty that President Bush has refused to sign, and challenge China
and India to reduce their carbon emissions.

"I will not shirk the mantle of leadership that the US bears," he said.
"I will not permit eight long years to pass without serious action on serious
challenges. I will not accept the same dead-end of failed diplomacy that
claimed Kyoto. The US will lead and will lead with a different approach -- an
approach that speaks to the interests and obligations of every nation."

In addition, McCain will say in his speech that if developing countries
do not agree to meet emission standards, then he "would work with the European
Union and other like-minded governments...to develop a cost-equalization
mechanism to apply to those countries that decline to enact a similar cap."

--Christine Cordner, christine_cordner@platts.com