States see pushback against carbon trading
– John Kemp is a Reuters market analyst. The views expressed are his own —
Efforts to implement cap-and-trade programs at state level are faltering, just as policymakers in Washington are struggling to generate enough support to put in place a comprehensive national system.
Recent setbacks in California and Arizona point to growing headwinds against the policy. As cap-and-trade loses momentum and becomes embroiled in bigger political disputes about the size and role of government, opponents are becoming emboldened to try to block the policy completely.
Carbon market supporters have repeatedly expressed the hope that state and regional initiatives can provide at least a temporary substitute as hopes for a national program have dimmed in the wake of last year’s failed summit in Copenhagen and a string of election defeats that have thrown the progressive wing of the Democratic Party onto the defensive.
But the same factors that undermined support for a nationwide program, especially concern about the near-term costs and adverse impact on employment when the economy is only just starting to recover from deep recession, are dimming enthusiasm at state level as well.
In trade policy, policymakers and analysts talk about “bicycling theory”: you have to keep pressing forward with new liberalizing measures or risk forfeiting the gains already made as the process loses momentum and support falls away.
Business must take the lead on carbon management
Léo Apotheker is CEO of SAP. The views expressed are his own.
Most people who followed the Copenhagen climate talks in December will have been disappointed.
While the agreement brokered by the group of countries that included the United States, Brazil, China, India and South Africa and ratified by most of the attending countries is being touted as a success of sorts, it fell far short of the expectations that had built up, and achieved very little in concrete terms.
Now with the World Economic Forum approaching, the issue of climate change and sustainability will once again dominate discussions among the business and political leaders who attend the annual gathering in Davos.
Ever since the 1968 publication in Science of Garrett Hardin’s article “The Tragedy of the Commons,” it has been regarded as virtually an article of faith that only strong national and international regulators can be trusted with the proper management of public resources.
A clear regulatory framework is necessary for businesses to act in competitive environments and maybe at least some pieces of such a framework will be provided in the future. But it was not provided at Copenhagen.
The United State’s forward thinking progressive types want to lead the World in green sustainable energy. This drive was put in park by the last 5 out 7 administrations. It’s no wonder why the Dems finally got mad and elected Barack Obama, and why the Rupuglican’ts are reeling so spastic-ally. But leading the World in Green technology in the near future is going to be other countries like Germany, China. So we had better get cracking with government incentives to build up our
manufacturing base with solar cell factories, hydrogen cell factories, wind farm factories, Algea farms, Alpaca farms, Organic farms, etc etc. First Obama has to be re-elected in 2012 or it’s going to be 6 out 9 “backward not-green” administrations that our beautiful country has had to slog through year after year instead of 5 out of 9. I hope the rest of the World will support Democrats in 2012, for the Planet’s sake I pray.
U.S. cap-and-trade choice inferior to carbon tax
– John Kemp is a Reuters columnist. The views expressed are his own –
President Barack Obama’s first budget puts climate change at the heart of the administration’s long-term economic plan. But despite the clear theoretical advantages of a simple carbon tax, he seems set to follow the EU and California in opting for a cap-and-trade system.
The budget plan commits the administration to work with Congress on an economy-wide emissions reductions program, based around cap-and-trade.
It also anticipates almost $650 billion in revenues over 10 years from selling these yet-to-be-agreed pollution permits, and proceeds to spend it on investment in clean technologies ($120 billion) and rebates for vulnerable families, businesses and communities ($525.7 billion).
In a sense the budget is a “wish list”. While federal law requires the president to submit a unified budget, there is no obligation for Congress to consider it line by line, or even use it as a starting point in the annual tax-writing and spending process.
Prudently, the administration has been careful not to rely on permit auction revenues it may never be able to collect. The projections do not anticipate spending any money raised from the permit program until October 2012.
Revenues from permit sales have also been earmarked to fund clean technology and new tax offsets. If auctions do not occur, or raise less money than expected, these spending commitments can be cancelled without affecting the rest of the budget.
We can achieve what ever we put our minds to as a society. There are few technological limitations. The greatest impediment to moving forward on sustainable energy consumption is making it work under market conditions. Capitalism is the true world religion in daily practice. Instead of worrying about the impact of change to the economy, we should consider the impact that the lack of change would have on our planet. Where does that that come up in any business model?
On the other hand, we can always plod on like dinosaurs. Right Phoenix1?
Clean energy investment needs greener light
– Paul Taylor is a Reuters columnist. The opinions expressed are his own –
Investors in clean energy are like motorists stuck at broken traffic lights. The public policy light is green but the price and credit lights are deep red.
Investment in wind, wave and solar power should be booming after the European Union last year adopted an ambitious goal to draw 20 percent of its energy from renewable sources by 2020 to help fight global warming, and U.S. President Barack Obama made green power a central plank of his government’s policy.
But the credit crunch, economic recession, the spectacular fall in oil prices since last July and a record low European carbon price have cooled investors’ ardour.
Consultants New Energy Finance forecast zero investment growth in climate-related companies this year, after a spectacular growth rate of 60 percent in 2006-7.
“The commercial lending market is holding back and until that can be addressed, it’s going to be a major constraint,” says Christopher Knowles of the European Investment Bank’s energy and environment department.
Yet to achieve the EU’s 2020 target, investment decisions need to be taken soon on long-term projects to build a smart electricity grid, giant offshore wind farms and networks to bring renewable energy to Europe’s industrial heartland.
Progress is on the march but it can feel a bit scary.
Don’t let Valero slow down California by stall AB 32.
Go to Ellabakercenter.org/stopvalero
Why step back and progree feels so good.