WHouse may delay emission plan
2009-04-09 17:00
Washington - President Barack Obama's top science advisor said on Wednesday the White House could agree to delay making companies pay for all greenhouse gas emission permits under his pollution cap-and-trade plan.
"The idea, obviously, is to end up with a bill that reflects both the thinking of Congress and the administration, a bill that the president can sign," said top aide John Holdren in an interview with the Washington Post that was published on the newspaper's website on Wednesday.
But when it comes to auctioning off all emission permits, Holdren said: "Whether you get to start with that or get there over a period of time is something that's being discussed."
The president made tackling carbon emissions one of the centerpieces of his campaign, contrasting sharply with the administration of George W. Bush that repeatedly cast doubts on the existence of global warning.
Cap-and-trade proposal
Following through on that pledge, Obama included a cap-and-trade proposal in his $3.55 trillion budget plan presented to Congress in February, which is still subject to intense political wrangling before it can reach the president's desk for him to sign.
Obama's plan would set a cap for emissions of greenhouse gases for manufacturers. The government would auction off permits to emit greenhouse gasses to companies, which could trade them on a secondary market.
The president proposed auctioning off 100% of the emission permits, as opposed to Europe where companies were given the permits, which would provide quick incentives to companies to pollute less.
Congress will debate climate legislation
Holdren told the Post that cabinet-level officials are attempting to hash out principles that will guide climate legislation set to be debated in Congress in the coming weeks.
Electricity providers and manufacturers, which argued auctioning all of the permits would have led to a spike in prices, would welcome a move to grant some of the permits.
Obama's supporters in the environmental movement, however, are set to be less than pleased if the Democratic president slides on the promises made during his campaign to fix climate change.
Many Republicans in Congress remain deeply skeptical about adopting a market-based mechanism to cut carbon emissions, fearing it may hit the competitiveness of US firms and products on global markets, particularly while China and India refuse to make concessions in tandem.