The times they are a-changin’. Californian Henry Waxman is now Chair of the Committee on Energy and Commerce. He’ll watch over energy, environment and healthcare as we try to reduce emissions to 1990 levels by 2020; and lower them another 80% by 2050. This is going to be unpopular because the costs will be high.
Almost half of our electricity comes from coal-fired powerplants. At the last government count, 52 more of these were being developed. To generate an additional 27000 megawatts of electricity. So, while alternate generation revs up, some will suffer. But we can trust a Californian to get emissions changes passed. And the world’s biggest company seems to know it.
Earlier this month, the Chief Executive (CEO) of Exxon Mobil said he preferred a “more direct, a more transparent and a more effective approach” than what’s being talked about. That’d be the cap-and-trade of carbon allowance permits.
Several States in the US and Canada are testing ways to cap CO2 emissions by industries and individual companies. Those that stay below their cap can trade the credit to companies that go above their limits. But trading gives our financial wizards, who bankrupt whatever they touch, control. CEO Tillerson is CORRECT to not want a “Wall Street of emissions brokers.” European carbon traders also report problems.
The European Union (EU) plans to auction 20% of carbon allowance in 2013 and 100% in 2020. But the German Association of Industrial Energy Users and Generators (VIK) has an alternate plan because:
- auctions don’t help climate change;
- auctions raise costs for all electricity users;
- auctions can’t help make up lost profits for powerplants.
International consultancy ECOFYS agrees that the EU’s auctioning is very expensive and inefficient. They recommend allocating free carbon allowance based on actual production data. VIK’s alternative makes electricity FOURTEEN TIMES cheaper for consumers! And reduces as much carbon as auctioning.
Are Waxman & co. listening?
Reference
1. The Regional Greenhouse Gas Initiative: Connecticut, Delaware, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, Rhode Island and Vermont.
2. The Western Climate Initiative: Arizona, California, Montana, New Mexico, Oregon, Washington, British Columbia, Manitoba, Ontario and Quebec.
3. The Midwestern Greenhouse Gas Reduction Accord: Illinois, Iowa, Kansas, Michigan, Minnesota, and Wisconsin.
4. Russell Gold and Ian Talley, “Exxon CEO Advocates Emissions Tax”, 2009.
5. National Energy Technology Laboratory, Tracking New Coal-Fired Power Plants, 2008.
6. VIK Verband der Industriellen Energie- und Kraftwirtschaft e.V., “VIK Proposal for the EU Emissions Trading System: Correcting Shortcomings of the Current Proposal”, 2008.
