Carbon cap-and-trade

Carbon Cap-and-Trade

The issue of carbon dioxide and its effect on the environment, economy, and society has led to the United States finally seeking a solution to limit its pollution. The carbon cap-and-trade bill which was introduced into the House in the summer of 2009, sought to limit greenhouse gas emissions by setting up a complex cap-and-trade system. This market-based system works to put a limit on pollution through economically reasonable means. The bill features “$7.5 billion in "green bonds" for a new federal financing agency called the Clean Energy Deployment Administration” (Washington Post).The Clean Energy Deployment Administration (CEDA), created by the American Clean Energy Act of 2009, works to set-up deployment of domestic clean energy technologies through support of the government to private capital markets which provide loans. Issues arise from the Union of Concerned Scientists who stated “CEDA could require taxpayers to underwrite hundreds of billions of dollars in risky loans to big business with little congressional oversight.”

Along with the Union of Concerned Scientists and like any bill making its way through Congress, it has run into problems by those who oppose or support it. President Obama supports the bill and believes that cap-and-trade is the most effective measure of limiting CO2 emissions. However, the majority of Republicans do not support the bill because they believe that it will be a tax burden. Along with opposition from the Republicans, are some environmental groups such as GreenPeace and Friends of the Earth who believe that a better solution to greenhouse emissions can be sought. In the end, the bill was passed through the House and is showing little hope in the Senate.

I personally believe that the carbon cap-and-trade bill would be beneficial to our present and future society. Time is running out and action must be made now. Also, it is very important that the United States create legislation on carbon limits since the Copenhagen meetings were a big disappointment to the US citizens and other countries who depend on the US to cut its pollution. If the United States passes a bill on greenhouse gas emissions then other countries will follow, such as China and India. According to BusinessWeek, “there’s no solution to the global climate problem unless China and India agree to cut their own greenhouse gas emissions. Those countries won’t sign on until the U.S., which has been the main contributor to the problem, first shows that it’s serious.” Although the bill may not be the strongest piece of legislation, the passing of this bill would be a step in the right direction and could lead to further structures of improvement.