With global financial markets in turmoil and global warming emissions rising faster than the worst-case projections of leading scientists, we are at a historic crossroads, Those who say we cannot afford to enact legislation to reduce greenhouse gas emissions do not understand this moment or the economic opportunities presented by moving from a twentieth century fossil-fuel based economy to a twenty-first century economy that runs on clean renewable efficient energy.
Through a national “cap and trade” system, the country would adopt a strategic but flexible limitation on carbon that will “monetize” emissions for the first time. In this way, the marketplace will provide the certainty and signals that encourage the development of renewable and advanced energy technologies that emit little or no carbon into the atmosphere, such as those required in Ohio’s SB 221.
The Ohio business community recognizes a unique opportunity presented by the prospect of putting a cap on carbon pollution, and is supportive for the following reasons.
- Competitiveness: Capping carbon pollution will make advanced energy more competitive overnight. By monetizing carbon emissions, the marketplace will reward advanced energy and create a much more stable environment for clean-tech investments.
- SB 221: Ohio SB 221 contains a “3% cost cap” that lets utilities ignore renewable energy requirements if the overall cost of advanced energy would increase generation rates 3% or more. Monetizing carbon emissions will give advanced energy an “edge” in this cost comparison, leveling rates and avoiding the triggering of the cap.
- Investment: Any public revenues derived from a cap and trade system could be used to further the research, development and deployment of advanced energy technologies, helping further drive down its costs and speed further commercialization efforts.
- Costs: We all know energy prices are rising. One Ohio utility recently sought a 3-year 45% increase. While cap and trade will provide an upward pressure on rates for carbon emitting generation, the corresponding scale-up of advanced energy manufacturing will drive costs down over the long term.
- Efficiency: Saving energy boosts businesses’ bottom lines and puts money in consumers’ pockets. Consumer spending is the largest driver of our state economy. As part of climate legislation, Congress is considering a national renewable electricity and energy efficiency standard, similar to Ohio’s SB 221. By creating a national market for renewable electricity, Congress will drive further growth in our industry in Ohio and around the country.
Policies designed to put a cap and price on carbon, increase renewable energy and efficiency will stimulate investment development and deployment in clean technologies, create jobs, and make Ohio companies more internationally competitive and less vulnerable to fossil fuel prices.
We call on Congress to support these initiatives.
Sincerely,