Americans appear poised to act on global warming, but despite the best intentions, we may hasten environmental calamity.
The Lieberman-Warner Bill has passed Committee and appears headed to a full Senate vote. It would limit U.S. greenhouse gas (GHG) emissions in 2012 to 2005 levels, and reduce those by 70% in 2050. Sadly, by encouraging energy-intensive industries to move to developing countries, it would accelerate global warming and harm U.S. industries that could contribute importantly to a sustainable global solution.
Shrinking polar ice shelves and mountain glaciers offer compelling evidence that global temperatures are rising, and the scientific consensus is that manmade GHG emissions play a key role.
The Kyoto Protocol, implemented in 2005 without the United States, commits virtually all other industrialized countries to reducing GHG emissions to 6% to 8% below 1990 levels. Developing countries are generally absolved, though, industrialized countries may avoid some emission reductions by sponsoring clean-up and reforestation projects in them.
CO
2 emissions account for more than four fifths of U.S. GHG emissions and an even larger share of those susceptible to government action. CO
2 is created by processing and burning fossil rules, and curtailing emissions boils down to regulating fossil fuel use.
EU governments have established national limits on GHG emissions by requiring fossil fuel producing and using industries to obtain emission allowances. Limited allowances are issued by governments, and a private market has emerged for trading in these permits. Obtaining permits raises costs in fossil fuel-intensive activities.
Lieberman-Warner would impose a similar cap-and-trade regime on U.S. industries, auctioning off a large share of U.S. permits.
Unfortunately, big developing countries like China and India show little genuine inclination to participate in the Kyoto, and the EU regime encourages energy-intensive industries, like steel and aluminum, to move to developing countries. Lieberman-Warner would do the same in the United States.
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