New York City Mayor Michael Bloomberg at the Seattle Climate Protection Summit Friday, criticized carbon cap-and-trade systems, saying they would create price uncertainty for industries, while opening up loopholes for special interests. He called instead for a set carbon fee, which he says would be easier to enforce and implement.
Under his plan, which he touted at the Summit, hosted by the U.S. Conference of Mayors, polluters would pay $15 per ton of greenhouse gas (GHG) they emit. The money would fund a $500 a year tax cut for the average taxpayer.
Fees would also allow for tax credits to companies developing new GHG-reducing technologies.
“Even though energy costs would rise,” Bloomberg said “the savings from tax cuts and energy efficiencies would, over the long run, leave consumers with more money in their pockets.”
He stated that defined incentives would provide greater motivation for companies than a flexible cap-and-trade approach, in that, the more a company reduced pollution, the lower its tax bill would be.
Under cap-and-trade systems, currently being considered by Congress, companies have the choice of reducing their own GHG emissions, or buying credits from other companies that do. The US Senate’s subcommittee on environment and public works approved such a bill on Thursday.
Bloomberg, who left the Republican party to become an independent earlier this year, strongly opposes the system. “The primary flaw of cap-and-trade is economic – price uncertainty; while the primary flaw of a pollution fee is political – the difficulty of getting it through Congress.”
“But I’ve never been one to let short-term politics get in the way of long-term success,” said Bloomberg, who some believe may be considering running for president as an independent “For the money, a direct fee will generate more long-term savings for consumers, and greater carbon reductions for the environment,” he added.
Loading...