Monday, November 16, 2009

Laurie Williams and Allan Zabel Are Completely Wrong

The Center completely disagrees with the conclusions of Laurie Williams and Allan Zabel regarding their views on the pending climate change legislation. The legislation provides a very good framework for addressing climate change mitigation and we support both bills. Waxman/Markey (H.R. 2454: American Clean Energy and Security Act of 2009) and Boxer/Kerry (S. 1733: Clean Energy Jobs and American Power Act) are good bills and the Center supports the legislation with the caveat that 97% of the allowances should be allocated free.

Laurie Williams and Allan Zabel are wrong on their three points: 1) The Big Lie, 2) The Big Rip-Off and 3) The Real Solution.

1) This point is wrong because cap and trade will lead to trillions of dollars in investments and innovation. This San Francisco couple appears to be anticapitalist and comparing the legislation to the subprime mortgage disaster is just beyond the pale.

Unfortunately, they do not see that an American cap and trade program will create a global frenzy to turn carbon dioxide (CO2) into a profitable commodity. Profit drives innovation.

2) Offsets are not a rip-off. They are innovative tools for achieving CO2 reductions. Offsets will also create a global frenzy once the United States gives this appropriate signal.

The Center has even established a clearinghouse, the Carbon Mercantile Exchange, to participate in allowance and offset trading. We hope the legislation will allow 'anyone' to participate in trading to get maximum participation just as is the case in the Acid Rain Program.

3) Their 'Real Solution' is a real nightmare. We totally oppose their 'carbon fees (taxes) with rebates' because, even though they say that energy will be affordable via rebates, it is really just a plan to use high prices to drive energy conservation. The Center opposes using price as a conservation driver as a matter of organization policy.

Monthly rebates? We suspect these rebates will not match the high energy prices. Regardless, energy taxes will never pass in Congress anyway so this idea is dead before even arriving.

Their website and their video.

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