Last month, the Senate began debate on the first comprehensive climate change bill, known as the Lieberman-Warner Climate Security Act (the “Bill”). The Bill would rely on a “cap and trade” program (the “Program”) to give power plants, factories and refineries financial incentive to reduce their greenhouse gas emissions. Under the Bill, the Program would first set a cap on the total carbon dioxide emissions allowed in the United States. Each U.S. company would be given a permit that sets the limit on how much pollution it may generate. Over time, these permits would allow less and less total emissions by a company. According to a summary released by the Senate Environment and Public Works Committee, the Program would reduce the total emissions level by 65% nationwide by 2050. Companies would be given a percentage of emissions “credits” for free initially, and if they are unable to reduce emissions, they may purchase additional credits.
Opponents of the Bill, including President Bush, argue that any measures that would curb carbon emissions on a nationwide basis would hurt the U.S. economy by increasing already high energy costs. According to press reports, President Bush is likely to veto the Bill, even if it passes in Congress. Though it is unlikely that the Bill be passed into law this year, proponents of the Bill are optimistic that the new Administration next year will be more supportive.
