Cap and trade must take back seat: execs
By Gerard Wynn and Martin Howell
DAVOS, Switzerland (Reuters) - Business executives and policy officials said a U.S. cap and trade scheme must give way to a clean energy law, after U.S. President Barack Obama favored "green jobs" in his State of the Union Address.
Cap and trade works by limiting carbon emissions from polluters, which then pass on the extra cost to consumers. That model is proving a hard sell during a slow U.S. economic recovery.
Obama said on Wednesday he wanted to create more clean energy jobs and supported a "comprehensive energy and climate bill" in the Senate. But he didn't mention cap and trade.
The U.S. House of Representatives passed a climate bill last year, featuring a cap and trade scheme, and is awaiting the passage of a similar Senate draft.
"I don't think that the House bill that passed will even be considered this year in the Senate," said Tom Donahue, President of the U.S. Chamber of Commerce, noting that it was an election year and there were so many other priorities, including Obama's latest jobs plan.
"We are in search of a solid domestic bill, whether its cap and trade or cap and carbon tax or however these things are put together. We just don't want a bill like the one that came out of the House," he told Reuters on Thursday on the sidelines of a business and policy summit in the Davos Swiss ski resort.
The industry lobby group ran a high-profile campaign against the House climate bill, losing some members as a result, but even businesses with big investments in green technology are now calling for a backing from cap and trade for now.
"There is so much on the plates of politicians and regulators in the United States it is hard for me to envisage a strong movement to have a cap and trade system in place in the next eight or nine months," said John Rice, a vice chairman of General Electric Co (GE.N: Quote), who also serves as chief executive of its GE Technology Infrastructure division. Continued...