CIG has learned that since the signing of the watered down Copenhagen Accord, which failed to address the issue of global emission targets, it is now felt that it may be impossible for U.S. lawmakers to include a cap-and-trade policy in any new domestic climate change bill that is anticipated to be dealt with by the Senate in early 2010.
With mounting pressure on legislators to assist the nation to become a leader in the production of low-carbon energy sources such as wind, solar and nuclear power, tighter legislation may be asking too much too soon.
CIG also believes that since the new accord lacked any emissions targets, the U.S. will shy away from capping industries while China the globes largest emitter of CO2 and other big polluters are not legally bound to act on climate.
An analyst at Wood Mackenzie was quoted as saying, "We were previously of the view that cap and trade was becoming an increasingly hard sell in the U.S., but I think the events in Copenhagen have probably made that even more difficult," CIG believes, adding that " Alternatives to cap and trade will emerge, such as mandates and incentives for increasing levels of energy from low-carbon sources like solar, wind and nuclear.”
The U.S. has delayed action on climate legislation in favor of the pressing health care amendments put forward by the Obama administration, and it is felt that the longer the delay on climate change legislation, the harder it will be for the Democrats to drive cap-and-trade legislation through the Senate in 2010.
