16 July 2009 19:59 [Source: ICIS news]
WASHINGTON (ICIS news)--US chemical producers, other energy intensive manufacturers and small business owners on Thursday warned a Senate panel that climate change legislation will raise energy costs and reduce employment.
In testimony provided to the Senate Environment and Public Works Committee, the American Materials Manufacturing Alliance cautioned that the massive climate bill recently passed by the House of Representatives would trigger “large increases in the cost of electricity, natural gas, biomass and coal”.
The Senate hearing was called to consider what impact climate change legislation might have on ?xml:namespace>
The materials manufacturing alliance, which includes the American Chemistry Council (ACC) along with aluminium, iron and steel and paper products trade groups, noted that the expected increases in power costs from a federal climate change mandate would hit energy intensive manufacturers doubly hard.
Increased costs for natural gas, an increasingly preferred generating fuel for
US petrochemical manufacturers and downstream chemical producers are heavily dependent on natural gas as a feedstock.
Noting that chemical industry products play a major role in improving energy efficiency, emissions reductions and alternative energy production, the alliance argued that increased power and feedstock costs resulting from climate change legislation would undermine industry’s ability to produce energy-saving materials and create jobs.
“To contribute solutions to climate change, we must be able to successfully operate our
The Senate panel also heard testimony from Harry Alford, president of the National Black Chamber of Commerce, who warned that climate change legislation “will negatively impact the most vulnerable of our society”, including small and minority-owned businesses.
Alford said that a CRA International study commissioned by his chamber found that the House-passed cap-and-trade emissions reductions mandate would burden households with higher energy and transportation costs, causing income losses and reducing consumer spending.
Those results would in turn lower investment,
Alford pointedly warned the panel that “when those consumers lose their jobs as a result of cap-and-trade legislation, they will come looking for someone to blame - and that someone could be their elected officials”.
The Environment and Public Works Committee is one of at least four Senate panels that are expected to hear testimony on and make changes to the 1,500-page House bill.
For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.
Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
|ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index|
Asian Chemical Connections