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America edges closer to landmark bill on climate change

Pressure from the Obama administration helped the Waxman-Markey climate change bill pass the U.S. House of Representatives. But it was a narrow victory, and the legislation faces a stiff test in the Senate. Democrats aims to pass the bill before the 4th of July recess, but it is getting a bruising and targets are being eroded:

• The targeted reduction in CO2 emissions from 1990 levels has been reduced from 20% to 4%
• The proposed carbon price cap has been reduced from between $40 and $60 per metric ton to $28
• An initial plan to sell all carbon permits has been replaced by a proposal to give 85% of permits away free
• The proportion of carbon tax revenues slated for overseas aid has been reduced from 5% to 1%

These changes have sparked criticism from environmental organizations, such as GreenPeace, which claims that emission reductions need to be in the 40% to 50% range to reduce climate change. The European Union will also be unhappy, as legislators there are working on emission-level reductions of 20%, which will affect European competitiveness against U.S. industry.

Behind these moves to water down the bill? Industry pressure, playing on fears that more significant measures, on the heels of a global recession, could stifle the green shoots of economic recovery. Republicans also claimed the cap-and-trade plan would place an additional green tax of $3,128 onto each household. That claim was rebutted by a recent Congressional Budget Office report, which estimated that the net annual cost of the new legislation would be “about $175 per household.”

Despite the intense negotiations and compromises, the Waxman-Markey bill, if it passes, will mark a new era for the United States—a country where per capita CO2 emissions are twice the level in Europe and 200 times that in Chad.

The bill is generating considerable debate, as Americans come to terms with a new generational threat. Industry is also changing. The collapse of the car industry, will lead to a new generation of more fuel-efficient cars. General Motors is investin in development of an electric car that can reach speeds of 100 mph. Stringent emissions rules in California may accelerate change in the U.S. transport sector.

Texas is becoming a leading center for wind farming. Both solar cells and solar thermal plants are becoming commercially viable, and these systems are leading to smart electricity grids that accept electricity from multiple types of supplier. Nuclear energy is making a comeback too, as groups such as GreenPeace now advocate for significant increases in nuclear investments to provide carbon-free energy, and more liberalized energy markets allow International development in this vital sector.

So, although the Waxman Markey Bill seems watered down, it indicates a fundamental change in US policy and leadership. [More at <http://www.bbc.co.uk/blogs/ethicalman/>.]

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