Senate Proposes New Carbon Market

As focus shifts to legislation for climate change by 2010

, negotiations are already being pursued at the United States Senate. The House of Representatives might have already passed the American Clean Energy and Security Act in 2009, but the cap and trade scheme contained herein got its corresponding objections from the other side of Capitol Hill.

Under new initiatives posed by a Republican Senator (Graham), a Democrat (Kerry) and Washington's only independent (Lieberman), power companies would be forced to buy and sell their "rights" to pollute within a new carbon market, with oil companies expected to pay fixed fees for their emissions. This is essentially a hybrid utility carbon market, which is another angle for consideration by legislators.

Intensive negotiations go on behind the scenes in the U.S. Senate, as focus turns toward climate change legislation during the course of 2010. In 2009, the House of Representatives might have already passed the American Clean Energy and Security Act, but the cap and trade program that's within this did not gain favorable response from its opponents.

Climate change has been historically political and it is expected by a few observers that the Senate shall be able to move forward when it comes to issues on climate change without a serious thrust within 2010. A lot of people are actually expecting that the elections on November will affect such activity and it is most likely that much will not take off until the congressional sessions will be realized in 2011.

Many argue that widespread support for controversial "cap and trade" legislation has waned somewhat, especially as political attention was focused on healthcare issues during almost all of 2009. Many were disappointed by the lack of results emanating from the Copenhagen Summit and environmentalists continue to warn us that we can ill afford to stall and must pay clear attention to the introduction of carbon market forces.

Among the many issues faced by law-makers would be the provision allowing oceans offshore to be opened up for gas and oil drilling. It is most likely that those Senators whose states will be directly affected by such legislation would be against such proposals, if it does moves forward.

If senators can get beyond issues such as offshore oil and concentrate on the broader legislation at hand, new proposals for the establishment of a carbon market affecting oil companies and power companies could gain favor. Within the new legislation, a fixed fee would be paid for emissions by oil companies, linked to the price that power companies pay for carbon dioxide allowances. These calculations would be related to what is workable within the carbon market.

As companies large and small come to the realization that some form of carbon market may well be in evidence within the years ahead, they should realize that they will, in one form or another, be more liable for the energy that they use within their daily operations. It is in their best interests to reduce their use of energy and consequent carbon emissions, so that they can contain their costs and be seen to be acting in a more sustainable fashion.

Activity from the cross party group of senators is now ramping up as they seek to help introduce a workable trading scheme for the carbon market ahead. Industry groups like the Chambers of Commerce and other bodies which represent the electricity and utility production companies are already getting more involved while the exploration on legislation goes on.

by: Daniel Stouffer

POST COMMENT

Auckland - Key Investment Destination In New Zealand Fdi Britney Spears ... Will Drop A New Album In November ! Bring Your Garden To Life With Solar Garden Lights Emerging New Technologies In Online Learning Add Shine To Your Home Inexpensively With Solar LED Lights Hero Honda Passion Pro- new Identity of Indians Cut Down On Electricity Bills By Using Solar Outdoor Lights LV Garbage Bag Is New Stylish Choice BLACKBERRY TORCH 9800 DEALS– move on and grab your new phone Experience New Cultures with Marrakech Hotels Naples Gmc Acadia Dealers Fascinated By New Hydrogen Fueling Plans Cheaper Solar Cells Are On The Way Residential Solar Energy Truths and Advantages