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| Senators Talk About New Carbon Market |
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Intensive negotiations go on behind the scenes in the U.S. Senate, as focus turns toward climate change legislation during the course of 2010. The House of Representatives may have narrowly passed the American Clean Energy and Security Act in 2009, but the intensive cap and trade program contained therein did not meet with much favor on the other side of Capitol Hill.
Intensive negotiations go on behind the scenes in the U.S. Senate, as focus turns toward climate change legislation during the course of 2010. The House of Representatives may have narrowly passed the American Clean Energy and Security Act in 2009, but the intensive cap and trade program contained therein did not meet with much favor on the other side of Capitol Hill. Three senators from across the political divide -- Graham, a Republican, Lieberman, a very rare independent and Kerry, a Democrat, have all been working hard on an initiative, whose fundamental provisions expect companies to buy and sell rights to pollute within a new carbon market. Specifically, oil companies would be expected to pay a fixed amount according to emissions, as this hybrid carbon market is designed. Historically, the issue of climate change has been very contentious across the political divide and few observers expect the Senate to be able to advance climate change legislation without a serious fight during 2010. Many expect the looming political elections in November to temper activity and that little will be effectively done until the 2011 congressional sessions. Many argue that widespread support for controversial "cap and trade" legislation has waned somewhat, especially as political attention was focused on health care issues during almost all of 2009. Many were disappointed by the lack of results emanating from the Copenhagen Summit and environmentalists continue to warn us that we can ill afford to stall and must pay clear attention to the introduction of carbon market forces. As seems to be always the case, complications within a legislative bill could threaten the outcome of the overall legislation itself. Here we see that initiatives encouraging offshore oil and gas drilling within overall climate legislation are problematic and Senators representing states that are directly affected by such issues are up in arms. If senators can get beyond issues such as offshore oil and concentrate on the broader legislation at hand, new proposals for the establishment of a carbon market affecting oil companies and power companies could gain favor. Within the new legislation, a fixed fee would be paid for emissions by oil companies, linked to the price that power companies pay for carbon dioxide allowances. These calculations would be related to what is workable within the carbon market. Political minefields proliferate, but yet there is a growing feeling that some form of carbon market will emerge at the end of the process. Companies across the country and around the world know that they will be affected and the more forward thinking organizations are already looking at their daily operations to see how they can make a difference. They must reduce their energy usage and by tempering their carbon emissions will also be seen as being more sustainable from a public perspective. Industry watchdogs and development bodies are fully engaged in discussions as a workable trading scheme and broader carbon market is depicted. Their number includes Chambers of Commerce from across the country as well as electricity and utility production organizations, all actively involved in finding a solution. About the Author: Daniel Stouffer has a lot of information about carbon market and how a visit to www.verisae.com can benefit you. |