CLIMATE SECURITY: Politicians, corporations and environmental groups tackle greenhouse gas regulations this week on Capitol Hill. Washington experts say to expect fireworks—few topics are as divisive as global warming.

Starting this week, the U.S. Senate begins debating a bill addressing climate change. The controversial Climate Security Act aims to reduce greenhouse gas emissions by as much as 66% by the year 2050. Critics claim it will hurt the economy, while supporters claim the benefits outweigh the minimal cost.

Cap and Trade: Buying and Selling Carbon Credits

U.S. Sens. Joe Lieberman (Ind-Conn.) and John Warner (R-Va.) first introduced the bipartisan bill in October 2007. It targets major polluters, such as:

• power plants
• manufacturing facilities
• oil companies

The proposed legislation would employ a "cap and trade" mechanism for industry by:

• placing a limit on current emissions
• requiring a reduction of emissions by about 2% every year from 2012 to 2050
• allotting emission credits, which could then be bought, sold or traded to other companies

How does the carbon credit system work? Each polluter begins with a certain number of emissions "credits"—the amount of carbon they're allowed to emit. At auctions, they could sell, buy or trade their credits. In the 1980s, a similar credit system proved effective for tackling the acid rain crisis.

Climate Bill Critics Say...

Critics of the bill, however, claim it will raise the cost of energy and hurt the economy.

Energy: "If a cap-and-trade bill becomes law, every single American will pay more for gasoline, more for electricity, more for food—more for everything they buy as a result," said U.S. Sen. Bob Corker (R-Tenn.). (Sen. Bob Corker Web site, 5/22/08)

Economy: Other opponents of the bill fear it will have a disastrous impact on the country's economy. According to a study by the National Association of Manufacturers released earlier this year, the Climate Security Act could reduce gross domestic product (GDP) as much as $210 billion by the year 2020.

Climate Bill Supporters Say...

The bill's supporters argue, though, that the economy won't be affected nearly as much as critics claim.

Energy: Proponents of the Climate Security Act say the program's revenues, estimated to be around $6.7 trillion over nearly 40 years, will be used to offset the increased cost of electricity and gas for middle- and low-income families.

Economy: When the Environmental Defense Fund studied a variety of potential pollution caps, it found the effect on GDP from 2010 to 2030 might only be 0.5%. The report also predicted that there would not be a significant number of jobs lost, another concern of the bill's opponents.

Greenhouse Gas Emissions Debate Just Beginning

Critics and supporters alike view this discussion as the first round of what promises to be an epic battle:

• Despite all the intense blustering expected from Congress over this issue, observers say the bill doesn't have enough votes to pass in the Senate. And it may not even reach the House this year.
• President Bush has promised to veto the proposed legislation should it ever reach his desk.
• All three presidential candidates have said they favor some form of regulated emissions.

Copyright © 2009 Informify

Question for Readers:

How large of a role do you think the debate over greenhouse gas regulations will play in the presidential election?