Energy-Intensive Sectors Want More Protection in Senate Climate Bill

Date: July 7, 2009

Source: News Room

As debate over the Waxman-Markey Climate Change bill moves into the Senate, energy-intensive industries are pushing for a major debate over the need for more compensation in the event that China, India, and other major developing economies do not adopt greenhouse gas (GHG) controls comparable to U.S. legislation. Representatives with the American Iron and Steel Institute (AISI) and other trade groups argue that the only effective approach to reducing GHGs is to ensure that China, now the world's largest emitter, and other major developing economies participate in emissions mitigation requirements. They would like to see the Senate version of the bill go beyond House-passed legislation to give 100 percent parity in tariff protection from goods from non-carbon controlled economies, and to increase free allowances to heavy energy users to keep the cost of goods down. Otherwise, U.S. manufacturers would be obligated to incur costs not born by competitor nations, giving them a competitive advantageand drawing jobs overseas.

AISI is working to identify all of the costs the industry would incur under the House legislation and is seeking "a sufficient and stable pool of allowances which address all costs of compliance," according to a June 24 letter AISI sent to members of the House Energy and Ways and Means committee.

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