US industry warns Congress on carbon controls

28 June 2007 23:58  [Source: ICIS news]

WASHINGTON (ICIS news)--Industry leaders warned Congress on Thursday that mandatory carbon controls on American electric utilities could drive more US chemical production, other manufacturing and jobs offshore.

 

Thomas Donohue, president of the US Chamber of Commerce, told the Senate Environment and Public Works Committee that legislative efforts to curb US contributions to global warming could “turn out the lights on our country’s economic future”.

 

Testifying in a hearing called to consider the potential impact of global climate change proposals on the US electric power sector, Donohue said:  “If Congress does not carefully consider the impact provisions such as mandatory emissions caps and mandatory renewable energy standards will have on industry, the chamber believes the economic consequences could be severe.”

 

The committee, chaired by Senator Barbara Boxer (Democrat-California), is considering several “cap and trade” legislative proposals meant to reduce US emissions of carbon dioxide (CO2) and other greenhouse gases believed to cause global warming.

 

Boxer has vowed to advance legislation to reduce US greenhouse gas emissions at least 80% below 1990 levels by 2050. “Power plants are a big part of the problem and can also pose a huge threat to public health,” she said in a statement.

 

Donohue, whose organisation includes many utilities and chemical producers among its 3m member firms, cited a study by the Massachusetts Institute of Technology (MIT) showing that the three main emissions bills before Congress could raise US electric power costs by 30-75% between 2015 and 2020.

 

“Faced with such rising energy costs, it would be no surprise to see many heavily energy-dependent industries migrate overseas and take American jobs along with them,” Donohue said.  “The chemicals industry has already done so.”

 

Donohue also was critical of seemingly contradictory congressional goals.

 

“On one hand, Congress seeks to place serious limits on energy exploration, but on the other continues to push for energy independence and carbon-constraining climate change legislation,” he said.  He said the US cannot achieve energy independence if Congress continues to limit oil and gas exploration in outer continental shelf regions off US shores.

 

The US Chamber of Commerce is a private trade group not related to the federal government.

By: Joe Kamalick
+1 713 525 2653

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