AISI, NAM: Climate Change Bill Falls Short
Leading industry trade groups contend that climate change legislation recently introduced in the U.S. Senate by John Kerry and Joe Lieberman does not go far enough to protect American manufacturing.
“At first glance, we are greatly concerned that the proposed legislation does not go far enough to ensure the steel sector's competitiveness in the global marketplace. As we have consistently stated, without sufficient allowances to compensate for emissions compliance costs and additional measures to offset the near-certain cost increases for energy, the leakage of both carbon emissions and manufacturing jobs is likely,” says Thomas J. Gibson, president of the American Iron and Steel Institute, Washington, D.C.
Additionally, he said, while the proposed bill includes a provision for a border measure, the draft mechanism includes too many loopholes to be effective in addressing the threat of leakage to countries that do not have in place comparable greenhouse gas emissions regulations.
"We do agree with the senators that national climate legislation should supersede existing state and federal laws currently being used to regulate greenhouse gas emissions from stationary sources. AISI also appreciates the proposed federal research and development effort for breakthrough technologies and its provisions to expand America's energy supply through off-shore oil and gas access, incentives for nuclear power and advanced coal technologies.”
Similar concerns were raised by the National Association of Manufacturers and the American Materials Manufacturing Alliance, a collection of trade associations that includes the AISI and Aluminum Association.
“Manufacturers believe America can and should work toward a reasonable, economically viable solution on climate change issues. No other sector of the economy has made more investments in innovative solutions to advance renewable and alternative energy and greenhouse gas emissions reduction technology,” says Jay Timmons, executive vice president of the Washington, D.C.-based National Association of Manufacturers. “However, we remain concerned that the legislation could impose additional burdens on manufacturers that will raise energy prices and ultimately hurt our global competitiveness.”