A Return to Common Sense on Climate Change

It's amazing how facing an important vote can focus a senator's mind. That's exactly what happened late last week when members of the U.S. Senate seriously weighed the price tag for the Climate Security Act--commonly known as the Lieberman-Warner bill--and decided not to even bring it up for a floor vote.

 

Senators got it right--the price was too high to pay. Lieberman-Warner would have created a massive new federal bureaucracy, significantly increased energy prices, cost 2 million to 4 million jobs, and transferred $6 trillion of wealth from business and other energy consumers to government.

 

The U.S. Chamber has offered practical and workable solutions to the climate change debate for a decade. We have outlined the fundamental principles we believe must guide any response to it. They include a recognition that economic growth and competitiveness must be preserved; that technology and efficiency based on realistic timetables should be at the center of any effort; and that only a global solution, including all major greenhouse gas emitters, would actually have a chance to work.

 

Lieberman-Warner failed on all counts. Therefore, the Chamber opposed it.

 

The bill would have created an elaborate system of carbon allowances, auctions, and trading arrangements. Under a complex formula, a specified number of emissions allowances would be given away, at first. Emitters would pay for CO2 in excess of their allowances. Over time, most “free” allowances would end, and emitters would have to purchase them.

 

The intent was to push up the cost of carbon in order to force the conversion to “clean” technologies and alternative sources. But these technologies do not yet exist, and experts agree that the replacement sources could never be ready in time to meet the deadlines in this legislation.

 

This bill would have imposed a vast, intrusive layer of new and costly regulations over virtually every economic activity in our country. To get an idea of how complex it would be, view this chart.

 

Lieberman-Warner also does little to confront the international nature of global climate change. Domestic greenhouse gas regulation will not affect emissions from developing nations, and without the participation of these nations, global greenhouse gas levels will continue to rise.

 

While the bill failed, the debate laid down important markers for the battles to come next year with a new president and Congress. The Chamber will continue to be a leader in devising commonsense, effective, and realistic solutions to address climate change. We will work constructively on Capitol Hill to register our concerns, make improvements, represent our members' interests, and seek solutions that address climate change while also working to expand, diversify, and secure America's energy supply.