Financial Soultions: Cap and Trade and US business

Sept. 16, 2009 - PRLog -- In pre election speeches, Obama said he'd tackle climate change by setting caps on emissions of greenhouse gases. As President, he's doing precisely that. He has proposed lowering U.S. emissions 14% below 2005 levels by 2020 and 83% below by 2050, Financial Soultions research shows. Massive targets to say the least.

The dilemma is not whether or not to impose carbon limits but how to do so and at what cost to business. Obama suggests that companies buy an allowance, or permit, for each ton of carbon emitted, at an estimated cost, to start, of $13 to $20 per ton. (Those permits could also be bought and sold, through exchanges like the Chicago Climate Exchange, and companies like Financial Soultions.)

Even at the lower scope of $13 per ton, energy companies and utilities would likely pass along the added cost to end users. It's approximated the price of gasoline would go up by 12 cents a gallon and the average electricity bill by about 7% nationally, and much higher in states more reliant on coal.

Also, there's small hope of getting China and India to consent to binding limits, which American companies insist is needed to keep the global playing field level, unless the U.S. takes action at home. Financial Soultions has recently reported that these 2 eastern players seem to be watching the US to take their lead from.

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