Professional Documents
Culture Documents
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**AT Disads.......................................................................................................................41
AT Economy DA................................................................................................................42
AT Economy DA................................................................................................................43
AT Economy DA................................................................................................................44
AT Economy DA................................................................................................................45
AT Fuel DAs......................................................................................................................46
Price Increases Good..........................................................................................................47
AT Cap and Trade Hurts Businesses ................................................................................48
________________............................................................................................................49
**AT Counterplans............................................................................................................49
AT Free Market CP............................................................................................................50
AT International Actor CP.................................................................................................51
AT International Actor CP—Perm ....................................................................................52
AT States CP .....................................................................................................................53
AT Allowances CP.............................................................................................................54
______________________................................................................................................55
**AT Negative Arguments ................................................................................................55
AT Off Shore Companies...................................................................................................56
International Allowances Bad............................................................................................57
___________......................................................................................................................58
**AT Kritiks ......................................................................................................................58
Inaction Bad.......................................................................................................................59
__________........................................................................................................................60
**Negative.........................................................................................................................60
No Rapid Warming............................................................................................................61
Unilateral Action Fails.......................................................................................................62
Solvency—No Technology ...............................................................................................63
Solvency—No Technology ...............................................................................................64
AT Schwartz & Randall Study...........................................................................................65
Biofuels Bad.......................................................................................................................66
No Rapid Warming............................................................................................................67
Neg—No Oil Peak.............................................................................................................68
_______..............................................................................................................................69
**Disads ............................................................................................................................69
Politics Link—Unions ......................................................................................................70
Politics Link—Partisanship ..............................................................................................71
____________....................................................................................................................72
**Counterplans..................................................................................................................72
Study CP............................................................................................................................73
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**Inherency
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Inherency—iCap Act
New cap and trade legislation changes focus of past proposals; requires investment in
alternative energy development
Markey 08 (Cong. Ed; Why Won't the Speaker Bring the Markey Bill to the Floor? Congressional Documents and
Publications, U.S. HOUSE OF REPRESENTATIVES DOCUMENTS June 5, 2008, l/n)
Representative Edward J. Markey (D-Mass.) officially introduced global warming legislation late
yesterday that would reduce global warming pollution according to scientific targets, reinvest any revenue
back to American consumers and to clean technology, and re-establish America as the leader in solving the
globe's greatest challenge, climate change. "This legislation sets out an American path to save the planet,
create jobs, and transition our economy away from the ideas of the past and towards the clean energy
solutions of today and tomorrow," said Rep. Markey. "We must cap pollution, we must invest in consumers,
jobs and the technology of tomorrow, and America must lead the world in the fight against global warming,
and we must start now." Rep. Markey is Chairman of the House Select Committee on Energy Independence
and Global Warming, and a senior member of the Energy and Commerce and Natural Resources
Committees. His legislation reflects his adherence to science-based targets, belief in technology-driven
solutions, faith in fair markets, and focus on protections for consumers. Rep. Markey announced the
legislation last week at a speech at the Center for American Progress, a Washington-based think tank. The
bill is called the Investing in Climate Action and Protection Act (HR 6186), or iCAP for short. The bill
proffers a new paradigm in global warming legislation: the Cap-and-Invest system. The legislation caps
pollution at 85 percent below 2005 levels by 2050. It then uses an auction system that sets a price on carbon,
and allows companies to compete for reductions, or buy or trade credits within the system. It then takes the
expected $8 trillion in revenues expected from polluters over the length of the bill, and reinvests that money
back to American families and workers and into promoting a clean energy economy. More than half of the
funds from the bill goes directly back to low- and middle-income American families to offset any increases
in energy costs from the transition of the economy to low- or zero-carbon energy. iCAP also invests in green
collar job training for workers in a clean energy economy, mass transit and smart growth, energy efficiency
programs, adaptation measures here in the United States and around the world, and many other programs
that will benefit both the economy and the environment.
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iCap Act—Plan
Three principles of science, investment and US leadership will be followed; possible
plan text is given as well
MARKEY 08 (HON. EDWARD J.; INTRODUCTION OF THE INVESTING IN CLIMATE ACTION AND
PROTECTION (iCAP) ACT; CONGRESSIONAL RECORD – EXTENSIONS; 154 Cong Rec E 1136; 110th
Congress, 2nd Session June 4, 2008, l/n)
Madam Speaker, I rise today to introduce the "Investing in Climate Action and Protection Act"-or "iCAP
Act"-a bill to reduce global warming pollution to levels sufficient to avoid catastrophic climate change and
to invest in America's transition to a secure and prosperous low-carbon future. The iCAP Act is founded on
three fundamental principles:
First, science solves problems. The scientific consensus is now unequivocal that global warming is
happening, that manmade greenhouse gas emissions are largely responsible, and that we must reduce those
emissions substantially over the coming decades if we are to avert a climate catastrophe. We have a moral
obligation to listen to that scientific consensus and act upon it, by starting today to reduce global warming
pollution to levels that will keep our planet safe for generations to come.
Second, investing solves problems. We must invest in the American economy and in American workers,
and launch an energy technology renaissance that will rival the information technology revolution of the
past decade. We all benefited from the Industrial Age, and we have watched the dawn of the Information
Age. Today, we must start the Clean Energy Age. This bill will provide a market-based push that will
trigger an explosion of energy technology development that will give us the same "Wow" feeling that we
get from our information technology-bringing robust economic growth while meeting our climate goals.
Third, American leadership solves problems. We must ensure America is the world leader in confronting
our climate crisis, giving us the credibility and the technology to bring China, India, and the rest of the
developing world under one large, climate-saving tent. In so doing, America will help protect vulnerable
communities around the world from the dangers of global warming, including drought, famine, and flood.
We will meet our international responsibilities while at the same time gaining global good will and
protecting our national security interests.
The iCAP bill implements these principles by establishing a "cap-and-invest" system, which caps
pollution, requires polluters to buy 100 percent of the tradable pollution allowances at auction, and invests
the auction proceeds in American consumers and in technologies and practices that save the climate while
also saving costs.
The core title of the bill amends the Clean Air Act to establish an EPA- administered cap-auction-
and-trade program that covers 87 percent of U.S. greenhouse gas emissions. This program will begin
to cut these emissions immediately and will reduce them to 85 percent below 2005 levels by 2050-the
U.S. contribution necessary to protect the global climate against dangerous warming.
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**Solvency
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iCap Solves
HR 6186 takes into account what Senate legislation does not; most comprehensive of
legislation offered; provides differences from Senate legislation
Goo 08 (Michael, Climate Legislative Director, Natural Resources Defense Council; Legislative Proposals to
Reduce Greenhouse Gas Emissions: An Overview; Hearing before the Subcommittee on Energy and Air Quality of the
House Energy and Commerce Committee June 19, 2008 http://energycommerce.house.gov/cmte_mtgs/110-eaq-
hrg.061908.Goo-testimony.pdf )
The Investing in Climate Action and Protection Act, H.R. 6186 (Congressman Markey).
H.R. 6186, the Investing in Climate Action and Protection Act (iCAP) builds off the basic structure of S.
2191 and S. 3036. The bill includes many of the same features as the Lieberman-Warner bill, as reported,
and the Boxer substitute bill, but also calls for steeper emission cuts and returns significantly smaller
amounts of the allowance revenue to emitters. Other features of the Lieberman-Warner Bill and the Boxer
substitute are also adjusted under iCAP as discussed below.
H.R. 6186 covers approximately 86 percent of U.S emissions and uses the same definition of “covered”
entities as S. 2191 and S. 3036, however the point of regulation for natural gas is the local gas distribution
companies. The iCAP bill also covers emissions from geological sequestration sites, which represents a
different approach to dealing with any potential leakage from geological sequestration sites than the
Lieberman-Warner bill H.R. 6186 requires covered sectors to reduce by 85 percent by 2050 from current
levels of greenhouse gas emissions. Covered sectors must reduce emissions by 20 percent from current
levels by 2020. In addition mandatory performance standards are included in the bill for coal mines,
landfills, wastewater treatment operations, and large animal feeding operations. Together with voluntary
incentives for agricultural and forest sequestration, these additional measures are estimated by the bills
sponsors to achieve an additional 7 percent reduction from source that are not covered entities. The iCAP
also establishes mandatory performance standards for any new coal-fired power plant, requiring all plants
on which construction begins after January 1, 2009, to achieve capture and geological sequestration of 85
percent of their CO2 emissions, by either 2016 or within 4 years of commencing operation. The bill also
statutorily grants the California Wavier for greenhouse gas emission standards for motor vehicles, which
EPA has denied.
The iCAP Act auctions 94 percent of allowances in 2012 and transitions to a 100 percent auction in 2020.
The 6 percent of allowances that are not initially auctioned are distributed to U.S. industries that are
energy-intensive and exposed to international trade competition (e.g., iron and steel, aluminum, cement,
glass, and paper).
The iCAP Act allows banking, borrowing and trading of permits. Borrowed allowances must be repaid
within five years with interest. Covered entities can meet up to 15 percent of their annual obligations with
EPA-approved domestic offset credits and up to an additional 15 percent with EPA-approved international
emission allowances or offset credits. However, domestic and international offset credits are subject to
rigorous standards to ensure reductions in emissions or increases in sequestration are real, verifiable,
additional, permanent, and enforceable. Only 4 categories of domestic offsets are allowed as follows:
• Reductions in (outside-the-cap) fugitive greenhouse gas emissions from oil and gas systems;
• Reductions in greenhouse gas emissions from livestock operations that are not covered by performance
standards,
• Reductions in greenhouse gas emissions from abandoned coal mines; and
• Increases in biological carbon sequestration through afforestation and reforestation.
The iCAP Act directs the Federal Energy Regulatory Commission to oversee the carbon market to prevent
fraud and market manipulation.
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iCap Solves
HR 6186 uses auction proceeds to offset rising energy costs; would implement
policies to incorporate alternative energy investment
Goo 08 (Michael, Climate Legislative Director, Natural Resources Defense Council; Legislative Proposals to
Reduce Greenhouse Gas Emissions: An Overview; Hearing before the Subcommittee on Energy and Air Quality of the
House Energy and Commerce Committee June 19, 2008 http://energycommerce.house.gov/cmte_mtgs/110-eaq-
hrg.061908.Goo-testimony.pdf )
Among the most prominent features of the iCAP act is the creation of a fund for low and middle income
households under which more than half of auction proceeds would be returned to low- and middle-income
households through rebates and tax credits. The fund is designed to compensate all increased energy costs
due to climate legislation for all households earning under $70,000 (66 percent of U.S. households), and
will provide benefits to all households earning up to $110,000 (over 80 percent of U.S. households).
Under iCAP the remaining auction proceeds are invested in a number of programs aimed at further
reducing the costs of reductions, spurring technology development and mitigating unavoidable impacts of
climate change. Funds are included for:
• clean energy technology research, development, demonstration and deployment
• energy efficiency policies
• incentives to U.S. farmers and foresters
• carbon storage in agricultural soils and forests
• green jobs training and assistance
• reduction of deforestation and deployment of clean technologies in developing countries
• programs to increase resilience to domestic and foreign climate change impacts
• climate change education
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iCAP will change current provisions and focus of energy legislation; it will not only
reduce carbon emissions, but also provide funds to individuals to go green
MARKEY 08 (HON. EDWARD J.; INTRODUCTION OF THE INVESTING IN CLIMATE ACTION AND
PROTECTION (iCAP) ACT; CONGRESSIONAL RECORD – EXTENSIONS; 154 Cong Rec E 1136; 110th
Congress, 2nd Session June 4, 2008, l/n)
The cap covers all the major sources of greenhouse gases. These include the nearly 10,000 power plants
and large industrial facilities that produce the majority of global warming pollution-facilities that are
already regulated for other pollutants. Other covered entities include companies that produce or import
petroleum- or coal-based liquid or gaseous fuels (like gasoline), companies that produce fluorinated gases
(found) in everything from air conditioners and refrigerators to the electronics industry), and companies
that distribute natural gas to consumers.
The iCAP bill creates the market-based incentive to reduce global warming pollution by establishing a
gradually declining budget of tradable pollution allowances for each year from 2012 through 2050, and by
requiring polluters to surrender a sufficient number of allowances to cover their heat trapping emissions
each year. Under iCAP, EPA will auction virtually all of these
allowances, instead of giving them away for free to polluters. This approach reflects what we have learned
over the past two decades.
For many years, our environmental laws were based on performance standards.
Every polluter was told how much or how little they could pollute. Everyone was
given a standard and they all had to meet it. That approach can work for some pollutants, but it also can be
very expensive.
In 1990, Congress came up with a novel approach to address the acid rain problem caused by sulfur
dioxide and nitrogen oxide emissions. This idea, sometimes called "cap and trade," embraces the notion
that all reductions are helpful but that some parties can achieve those reductions for much less. So if one
party can reduce pollution relatively cheaply, then another party that finds it more expensive can trade
money for the extra pollution reduction achieved by the more efficient party.
The European Union adopted this approach in enacting their carbon dioxide emission reduction program,
but it made some mistakes along the way from which the world has learned. One of those mistakes was to
give the pollution allowances away to polluters for free. Economic theory and the EU experience have
shown that only by implementing full 100 percent auctions can we ensure that polluters do not receive
windfall profits and that all energy sources are competing on a level playing field.
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iCap Solvency—Competitiveness/Emissions
iCAP provisions take into account industry competitiveness; establishes standards
to assist with carbon emission reduction and compliance in a variety of industries
MARKEY 08 (HON. EDWARD J.; INTRODUCTION OF THE INVESTING IN CLIMATE ACTION AND
PROTECTION (iCAP) ACT; CONGRESSIONAL RECORD – EXTENSIONS; 154 Cong Rec E 1136; 110th
Congress, 2nd Session June 4, 2008, l/n)
The iCAP bill begins by auctioning 94 percent of the emission allowances from 2012 to 2019, and
transitions to 100 percent auctions in 2020. Recognizing that some American industries-such as iron and
steel, aluminum, cement, glass, and paper-face intense international trade competition, the bill provides
transitional assistance to these industries. U.S. manufacturers in these
industries will receive six percent of emission allowances from 2012 to 2019 before they, too, have to hid at
auction for allowances. But note that, in order to stay competitive, these industries will need to begin
innovating on day one.
To reduce program costs, the iCAP bill permits unlimited trading of pollution allowances and banking of
allowances for future use. It also allows a regulated party to satisfy up to 15 percent of its yearly
compliance obligation with allowances "borrowed" from future years, provided the loan is repaid with
interest within 5 years. A regulated entity can meet up to 15 percent of its yearly obligations using EPA-
approved domestic offset credits, based on greenhouse gas reductions achieved outside the cap. A regulated
entity also may satisfy up to 15 percent of its yearly obligations using foreign allowances or offset credits
that meet rigorous EPA standards.
The cap-auction-and-trade system established by the bill will give rise to a large and vigorous new
"carbon market," on which pollution allowances, offset credits, and derivatives such as futures and option
contracts are traded. To ensure fairness, transparency, and stability in this new market, the bill establishes
an Office of Carbon Market oversight within the Federal Energy Regulatory Commission, which is charged
with prevention of fraud or market manipulation.
Alongside the cap-auction-and-trade system, the iCAP bill adopts mandatory performance standards for
certain other sources that cannot easily be included in the cap-such as coal mines, landfills, wastewater
treatments, and large animal feeding operations. It also provides financial incentives to farmers and forest
managers to adoption of practices that will further reduce global warming pollution and sequester carbon.
Together with the cap, these measures will cover over 94 percent of U.S. greenhouse gas emissions-as
much of the economy as is practicable to reach.
The bill also establishes measures to encourage the coal industry to invest in new technology to adapt to
the new low-carbon future. The International Energy Agency recently warned that, for the coal industry, "a
huge amount of investment and unprecedented technological breakthroughs such as in carbon capture and
storage" will be needed to meet the greenhouse gas reduction targets that scientists believe we most achieve
by 2050. The iCAP bill will help us meet this challenge by requiring that any new coal-fired power plant
use carbon capture and sequestration technology, and we give companies assistance to use this technology
until 2020. To the extent that the coal industry, with plenty of support from the Federal Government, can
make carbon capture and sequestration work, then it will be part of the energy portfolio in the future.
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Solvency—Community Support
Legislation must also include “green” education and community support
Baugh 08 (Robert C, Executive Director AFL-CIO Industrial Union Council and Co-chair AFL-CIO Energy Task
Force, Legislative Proposals to Reduce Greenhouse Gas Emissions: An Overview; Hearing before the Subcommittee
on Energy and Air Quality of the House Energy and Commerce Committee June 19, 2008
http://energycommerce.house.gov/cmte_mtgs/110-eaq-hrg.061908.Baugh-testimony.pdf)
The Bingaman-Specter, Boxer-Lieberman –Warner and Markey legislation all identified worker and
community transition and worker training as critical investments. The Boxer-Lieberman–Warner identified
major areas of worker investment, one of which corresponds with previous House legislation on green jobs.
The worker and community transition is modeled after the best elements of TAA legislation and previous
displaced worker legislation over the past 25 years. In addition to strong training, education and counseling
benefits it provides for wage replacement, health care, retirement bridges, and other forms of economic and
social assistance. It also recognizes the burdens that may fall on communities heavily dependent upon an
affected industry and offers community planning and other forms of economic development assistance. The
green jobs training program is modeled after House legislation that encourages collaborative community
.and labor-management initiatives
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Solvency—Incentives
Incentives allow for greater flexibility; trading would lead to cost savings over
command and control approach
Orszag 08 (Peter R., Director Congressional Budget Office; Implications of a Cap-and-Trade Program for Carbon
Dioxide Emissions; Hring before the Committee on Finance United States Senate; April 24;
http://finance.senate.gov/hearings/testimony/2008test/042408potest.pdf)
Flexibility in the Timing of Emission Reductions
Incentive-based approaches, which create financial incentives for firms and households to cut their
greenhouse-gas emissions, are a lower-cost approach to reducing emissions than more restrictive
command-and-control approaches, which would mandate how much such entities could emit or what
emission-reduction technologies they should use. The lower cost of incentive-based approaches stems from
the flexibility they provide as to where and how emission reductions are to be achieved. Either a tax or a
cap-and-trade program would offer such flexibility at a given point in time:
Under a tax, policymakers would levy a fee for each ton of CO2 emitted or for each ton of carbon
contained in fossil fuels. The tax would motivate entities to cut back on their emissions if the cost of doing
so was less than the cost of paying the tax. As a result, the tax would place an upper limit on the cost of
reducing emissions, but the total amount of CO2 that would be emitted in any given year would be
uncertain.
Under a cap-and-trade program, policymakers would set a limit on total emissions during some period
and would require regulated entities to hold rights, or allowances, to the emissions permitted under that cap.
(Each allowance would entitle companies to emit one ton of CO2 or to have one ton of carbon in the fuel
that they sold.) After the allowances for a given period were distributed, entities would be free to buy and
sell the allowances. The trading aspect of the program could lead to substantial cost savings relative to
command-and-control approaches: Firms that were able to reduce emissions most cheaply could profit from
selling allowances to firms that had relatively high abatement costs.
Cap-and-trade programs can vary substantially in the amount of leeway that they provide regulated entities
in the timing of emission reductions. Designs that allow for more timing flexibility are generally more cost-
effective.
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Solvency—Environment
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**Warming
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Warming Advantage—Timeframe
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Warming Advantage—Timeframe
Levels are high now; only adopting a plan for reduction now will solve
Figdor 08 (Emily, MPH Federal Global Warming Program Director Environment America; Legislative Proposals to
Reduce Greenhouse Gas Emissions: An Overview; Hearing before the Subcommittee on Energy and Air Quality of the
House Energy and Commerce Committee June 19, 2008 http://energycommerce.house.gov/cmte_mtgs/110-eaq-
hrg.061908.Figdor-testimony.pdf )
The United States has already committed, as a signatory to the 1992 United Nations Framework
Convention on Climate Change, to the goal of “[s]tabilization of greenhouse gas concentrations in the
atmosphere at a level that would prevent dangerous anthropogenic interference with the climate system.”iii
Many scientists and policymakers have identified a 2° C rise in global average temperature over pre-
industrial levels (which is equivalent to 3.6° F or about 2° F over today’s levels) as a rough threshold
between damaging and catastrophic global warming.iv
According to the Intergovernmental Panel on Climate Change (IPCC), to have a reasonable chance of
keeping global temperatures from rising by more than 2°C, the atmospheric concentration of global
warming pollutants (in carbon dioxide equivalent) must not rise higher than 450 parts per million (ppm).v
Leading climate scientists, such as James Hansen, believe that even this level of pollution may be too
much. They argue for a target of returning concentrations of global warming pollutants to 350 ppm.vi
Given that the concentration of global warming pollutants is already 375 ppm and rising every year, the
need for strong action is immediate.vii
To stabilize carbon dioxide levels between 445 and 490 ppm (carbon dioxide equivalent), global emissions
must peak no later than 2015 and decline by 50 to 85 percent below 2000 levels by 2050.viii The United
States must:
• stabilize total U.S. emissions at or below today’s levels immediately;
• reduce total U.S. emissions by at least 15 to 20 percent below today’s levels by
2020; and
• reduce total U.S. emissions by at least 80 percent by 2050.ix
Of course, the United States cannot solve global warming on its own. But let’s be clear: these emission
reduction targets – 15 to 20 percent by 2020 and 80 percent by 2050 – presume similarly strong action by
other developed countries and action by developing nations such as China and India. In other words, these
emission reductions represent the level of cuts that must be made right here at home.
We also need to help kick-start emission reductions in other countries through mechanisms such as
international forest protection. But none of these efforts minimize the need for immediate and ultimately
deep cuts in domestic global warming emissions.
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Warming Advantage—Timeframe
Current trends indicate that global warming is having an impact now; must act to
stop such trends
Goo 08 (Michael, Climate Legislative Director, Natural Resources Defense Council; Legislative Proposals to
Reduce Greenhouse Gas Emissions: An Overview; Hearing before the Subcommittee on Energy and Air Quality of the
House Energy and Commerce Committee June 19, 2008 http://energycommerce.house.gov/cmte_mtgs/110-eaq-
hrg.061908.Goo-testimony.pdf )
The time for action on global warming has already been delayed too long. Every day we learn more about
the ways in which global warming is already affecting our planet. Recent satellite pictures show that
summertime arctic ice has declined by 40 percent since 1979 (Figure 1). The UN Intergovernmental Panel
on Climate Change (IPCC) found that 11 of the past 12 years are among the 12 hottest years on record. The
Greenland and West Antarctic ice sheets are losing mass at accelerating rates. Rising sea surface
temperatures correlate strongly with increases in the number of Category 4 and 5 hurricanes. Increases in
wildfires, floods and droughts are predicted to occur as global warming continues unabated. Our oceans are
warming and becoming more acidic. Everywhere one looks, the impacts of a disrupted climate are
confronting us.
Climate scientists warn us that we must act now to begin making serious emission reductions if we are to
avoid truly dangerous global warming pollution concentrations. Because carbon dioxide and some other
global warming pollutants can remain in the atmosphere for many decades, centuries, or even longer, the
climate change impacts from pollution released today will continue throughout the 21st century and
beyond. Failure to pursue significant reductions in global warming pollution now will make the job much
harder in the future—both the job of stabilizing atmospheric pollution concentrations and the job of
avoiding the worst impacts of a climate gone haywire.
Since the start of the industrial revolution, carbon dioxide concentrations have risen from about 280 parts
per million (ppm) to more than 380 ppm today, and global average temperatures have risen by more than
one degree Fahrenheit over the last century. A growing body of scientific opinion has formed that we face
extreme dangers if global average temperatures are allowed to increase by more than 2 degrees Fahrenheit
from today’s levels. We may be able to stay within this envelope if atmospheric concentrations of CO2 and
other global warming gases are kept from exceeding 450 ppm CO2- equivalent and then rapidly reduced.
However, this will require us to halt U.S. emissions growth within the next few years and then cut
emissions by approximately 80 percent over the next 50 years.
This goal is ambitious, but achievable. It can be done through an annual rate of emissions reductions that
ramps up to about a 4 percent reduction per year (see Figure 2.) But if we delay and emissions continue to
grow at or near the business-as-usual trajectory for another 10 years, the job will become much harder. In
such a case, the annual emission reduction rate needed to stay on the 450 ppm path would double to 8
percent per year. In short, a slow start means a crash finish, with steeper and more disruptive cuts in
emissions required for each year of delay.
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Warming Impact—SSA
Climate change exacerbates problems in SSA
Fingar 08 (DR. THOMAS, DEPUTY DIRECTOR OF NATIONAL INTELLIGENCE FOR ANALYSIS AND CHAIRMAN OF
THE NATIONAL INTELLIGENCE COUNCIL; Hring before the PERMANENT SELECT COMMITTTEE ON INTELLIGENCE
AND THE SELECT COMMITTEE ON ENERGY INDEPENDENCE AND GLOBAL WARMING, HOUSE OF
REPRESENTATIVES; June 25, 2008;
http://globalwarming.house.gov/tools/2q08materials/files/0069.pdf)
Climate-induced tensions are a main contributor to instability in several areas of Africa.
We judge that sub-Saharan Africa will continue to be the most vulnerable region to climate
change because of multiple environmental, economic, political, and social stresses. Observed
temperatures have become warmer since the 1960s. This has been true across the varied climates of Africa. In addition, from
1961-2000 the number of warm spells increased over southern and western Africa.
Rainfall varies a good deal over most of Africa, but increased seasonal variability has
been observed since 1970, with higher rainfall anomalies and more intense and
widespread droughts. Scientific studies indicate that climate change is likely to cause agricultural losses, possibly severe in
the Sahel, West Africa, and southern Africa. Agricultural yields from some rainfall dependant crops
could be reduced by up to 50 percent by 2020.
Many African countries already challenged by persistent poverty, frequent natural
disasters, weak governance, and high dependence on agriculture probably will face a
significantly higher exposure to water stress owing to climate change.
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Warming Impact—Food/Water
Climate change will affect food production and water shortages in Asia
Fingar 08 (DR. THOMAS, DEPUTY DIRECTOR OF NATIONAL INTELLIGENCE FOR ANALYSIS AND CHAIRMAN OF
THE NATIONAL INTELLIGENCE COUNCIL; Hring before the PERMANENT SELECT COMMITTTEE ON INTELLIGENCE
AND THE SELECT COMMITTEE ON ENERGY INDEPENDENCE AND GLOBAL WARMING, HOUSE OF
REPRESENTATIVES; June 25, 2008;
http://globalwarming.house.gov/tools/2q08materials/files/0069.pdf)
In Asia,
despite future climate change that is expected to produce increased precipitation,
research indicates that South, Southeast, and East Asia will face risks of reduced
current
agricultural productivity as large parts of the region face increased risk of floods and
droughts. By 2025, cereal crop yields will decrease 2.5-10 percent, according to some calculations.
(This assumes no CO2 fertilization. Most plants growing in normal atmospheric CO2 exhibit higher rates of photosynthesis and
elevated CO2 alone tends to increase growth and yield of most agriculture plants.) Most of the studies have been conducted either
under controlled environmental conditions (chambers), or under optimal field conditions. Potential CO2 effects on plant biomass
depend on the nutrient and water
Observed increases in surface air temperature in recent decades range from less than 1 to 3
degrees C per decade, with the most pronounced warming in north Asia. Annual average
rainfall has decreased in Russia, northeast and north China, coastal belts and arid plains of Pakistan, parts of
northeast India, Indonesia, Philippines, and some areas of Japan; it has increased in western
and southeastern coastal China, Bangladesh, and the western coasts of the Philippines. In
parts of Asia extreme weather events are more frequent and severe and intense rains and
floods come more often. Droughts have intensified and/or affected more areas in Central,
South and Southeast Asia. Tropical storms are more frequent in the South China Sea, and the Bay of Bengal is
experiencing fewer but more intense storms. Some projections indicate as many as 50 million additional people
could be at risk of hunger by 2020, although climate change may moderate water stress in some regions of Asia. By
the 2020s increases in precipitation and glacier run-off will relieve some of the water stress
in Asia, but increasing consumption patterns and growing populations indicate that 120
million to 1.2 billion people will continue to experience some water stress.
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Warming Impact—Soil
Climate change will lead to land slides and erosion
Fingar 08 (DR. THOMAS, DEPUTY DIRECTOR OF NATIONAL INTELLIGENCE FOR ANALYSIS AND CHAIRMAN OF
THE NATIONAL INTELLIGENCE COUNCIL; Hring before the PERMANENT SELECT COMMITTTEE ON INTELLIGENCE
AND THE SELECT COMMITTEE ON ENERGY INDEPENDENCE AND GLOBAL WARMING, HOUSE OF
REPRESENTATIVES; June 25, 2008;
http://globalwarming.house.gov/tools/2q08materials/files/0069.pdf)
Australia and New Zealand will likely see increased temperature by 2030 and continued changes in
precipitation patterns. Since 1950 there has been a 0.3 to 0.7 degrees C warming in the region, with more
heat waves, fewer frosts, and an increase in the intensity of Australian droughts. Recent reports indicate
more rain in northwestern Australia and southwestern New Zealand, and less rain in southern and eastern
Australia and northeastern New Zealand.
According to scientific research, floods, landslides, droughts and storm surges are likely to become more
frequent and intense, and snow and frost are likely to become less frequent. Infrastructure design criteria
for extreme events, here as elsewhere, are likely to be exceeded more frequently.
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Warming Impact—Europe
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Warming Impact—Refugees
Victims of global warming will move to more economically advanced countries; will
strain resources
Fingar 08 (DR. THOMAS, DEPUTY DIRECTOR OF NATIONAL INTELLIGENCE FOR ANALYSIS AND CHAIRMAN OF
THE NATIONAL INTELLIGENCE COUNCIL; Hring before the PERMANENT SELECT COMMITTTEE ON INTELLIGENCE
AND THE SELECT COMMITTEE ON ENERGY INDEPENDENCE AND GLOBAL WARMING, HOUSE OF
REPRESENTATIVES; June 25, 2008;
http://globalwarming.house.gov/tools/2q08materials/files/0069.pdf)
economic refugees will perceive additional reasons to flee their homes because
We judge that
of harsher climates. Besides movement within countries, especially to urban areas, many
displaced persons will move into neighboring developing countries, sometimes as a
staging ground for subsequent movement onward to more developed and richer countries
with greater economic opportunities. Many likely receiving nations will have neither the
resources nor interest to host these climate migrants. Receiving nations probably will
have increased concern about migrants who may be exposed to or are carrying infectious
diseases that may put host nation populations at higher risk.
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Warming Impact—Terrorism
Terrorists use climate change impacts to recruit disenchanted individuals and
continue instability; addressing issues helps mitigate those efforts
Butts 08 (Dr. Kent Hughes, former co-chair of the NATO Environmental Security Pilot Study Meetings, Hrings
before the Joint Public Hearing of the Select Committee of Energy Independence and Global Warming and the
Intelligence CommunityManagement Subcommittee of the House Permanent Select Committee on Intelligence; US
House of Representatives; June 25, 2008;
http://globalwarming.house.gov/tools/2q08materials/files/0070.pdf)
The United States has done well at attacking and disrupting terrorists and their organizations, and defending
the homeland. It has done less well in a struggle against terrorist ideology that threatens moderate Muslim
regimes. Many countries that face a terrorist threat suggest that the United States must place more emphasis
on winning the ideological struggle if it is to succeed in the struggle against terror. State political systems
unable to meet the demands placed upon them by the population struggle to maintain legitimacy and power,
and invite the introduction of alternative or extremist ideology. Global climate change places additional
demands upon the political system that many developing states cannot meet. Scarcities of resources, lack of
safe water, reduced agricultural capacity; widespread disease and poverty create underlying conditions that
terrorists seek to exploit. According to the World Bank, intrastate conflict is 15 times more likely to occur
in poor countries than in the industrialized countries. Food riots in Cairo at a time when members of the
Muslim Brotherhood are running for election demonstrate the problem.
Climate change fans the fires of regional instability and creates opportunities for terrorists. According to the
9/11 Report, “When people lose hope, when societies break down, when countries fragment, the breeding
grounds for terrorism are created.” United States interests turn on regional stability. Climate change issues
are now recognized as a multiplier for regional instability and conflict, exacerbating tensions resulting from
religious, ethnic, and other local differences such as socio-economic disparities between rural and urban
areas, rapid economic development, and border disputes.
Military planners are responding to the demands of their leaders for proactive approaches to issues such as
competition with China and the underlying conditions of terror. The costs of the Iraq and Afghanistan wars
are encouraging fresh thinking about preventive defense in addressing issues that could destabilize regions
and lead to conflict. The NIA and the Center for Naval Analysis Climate Change and Security Report are
not alone in addressing the climate change and security link. DOD Directive 3000.05 has prioritized
stability operations by US military forces and increased the number of military planners and developers of
doctrine in this emerging area, thus creating an attentive audience for these products. What is needed is
increased priority on identifying and addressing the security effects of global climate change, to include
increasing funding for such integral agencies as the Department of State and USAID, and a strong mandate
for interagency cooperation that would further encourage military leaders to develop the capacities of host
nation militaries for supporting civil authority in addressing climate change issues.
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Warming Advantage—Environment
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Warming Advantage—Environment
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Warming Advantage—Environment—Snowballs
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_____
**Oil
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Dependency on Foreign Oil Puts National Security into the Hands of Other Nations
Mica, John; June 26 2008 Republican, Florida Representative; US Senate Congressional Record
[http://frwebgate.access.gpo.gov/cgi-bin/getpage.cgi?dbname=2008_record&page=H6122&position=all]
DZ
On that day when he announced it he said, ‘‘If we fail to act, our country will become more reliant on
foreign crude oil, putting our national energy security into the hands of foreign nations, some of whom do
not share our interests.’’ On that same day when he announced his plan, he said regarding part of his plan,
‘‘We will underwrite research and development into energy-saving technology. It’ll require manufacturers
to build more energy-efficient appliances. We will review and remove obstacles that prevent business from
investing in energy-efficient technologies.’’ Furthermore, President Bush said, ‘‘The second part of our
energy plan will be to expand and diversify our Nation’s energy supplies. America today imports,’’ and now
this is May of 2001, ‘‘America today imports 52 percent of all of our oil. If we don’t take action, those
imports will only grow.
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__________
**AT Disads
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AT Economy DA
Cost may be expensive now but will only increase in the future; must address
climate issues now to avoid future harms; ,multiple studies indicate
Goo 08 (Michael, Climate Legislative Director, Natural Resources Defense Council; Legislative Proposals to
Reduce Greenhouse Gas Emissions: An Overview; Hearing before the Subcommittee on Energy and Air Quality of the
House Energy and Commerce Committee June 19, 2008 http://energycommerce.house.gov/cmte_mtgs/110-eaq-
hrg.061908.Goo-testimony.pdf )
Costs of Inaction
The claim that climate protection is “too expensive” treats it like a discretionary expense – perhaps like a
luxury car or exotic vacation that is beyond this year’s budget. No harm is done by walking away from a
high-end purchase that you can’t quite afford.
But if we walk away from climate protection, we will be walking into danger. Unless we act now, the
climate disruption will continue to worsen, with health, economic, and environmental costs far greater than
the price of protection. Scholars and economists have only begun a serious assessment of the costs of
inaction but it is clear from their work that it is climate disruption, not climate protection programs, which
will wreck the economy.
The Stern Review, sponsored by the British government and directed by Sir Nicholas Stern, formerly the
chief economist at the World Bank, estimated that 5 percent of world economic output would be lost, given
a narrowly defined estimate of economic damages. Add in an estimate for environmental damage and for
the increased chance of an abrupt climate change catastrophe, and Stern’s estimates of losses from climate
disruption climb to 11 percent or more of world economic output.
A recent report released by researchers at Tufts University, commissioned by NRDC, builds on the Stern
Review and presents two ways of estimating the costs of inaction to the United States, both leading to
staggering bottom lines. A comprehensive estimate, based on state-of-the-art computer modeling, finds that
doing nothing on global warming will cost the United States economy more than 3.6 percent of GDP - or
$3.8 trillion annually (in today’s dollars) - by 2100.
In addition, a detailed, bottom-up analysis finds that just four categories of global warming impacts --
hurricane damage, real estate losses, increased energy costs and water costs -- will add up to a price tag of
1.8 percent of U.S. GDP, or almost $1.9 trillion annually (in today’s dollars) by 2100. Costs and damages
for the four detailed categories cited in the report if global warming continues include:
Hurricane damages: $422 billion
Real estate losses: $360 billion
Increased energy costs: $141 billion
Water costs: $950 billion
Global warming is already melting sea ice and glaciers that will contribute significantly to sea level rise.
Sea level is expected to rise 23 inches in 2050 and 45 inches by 2100, with grave impacts expected for the
Southeastern U.S. By 2100, an estimated $360 billion per year will be spent on damaged or destroyed
residential real estate in the United States as a result of the rising sea levels inundating low-lying coastal
properties. The effects of climate change will also be felt in the form of more severe heat waves,
hurricanes, droughts, fires, and other erratic weather events—and in their impact on our economy’s bottom
line.
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AT Economy DA
Action now is seen as necessary; plan would actually assist economic growth if
implemented now
Goo 08 (Michael, Climate Legislative Director, Natural Resources Defense Council; Legislative Proposals to
Reduce Greenhouse Gas Emissions: An Overview; Hearing before the Subcommittee on Energy and Air Quality of the
House Energy and Commerce Committee June 19, 2008 http://energycommerce.house.gov/cmte_mtgs/110-eaq-
hrg.061908.Goo-testimony.pdf )
Costs and Benefits of Action
The debate on global warming in Washington has turned decisively from "Is it a problem?" to "What
are we going to do about it and how much is it going to cost?" In fact, we can't afford not to
solve global warming. Economic analyses of the cost of reducing global warming pollution do not attempt to tally the
benefits of preventing global warming. As the studies just discussed make clear, the costs of inaction are likely to
swamp the costs of reducing emissions.
Even considering only the direct economic implications, it is clear that action to reduce global warming pollution
presents opportunities as well as costs, as recognized by the business and environmental leaders that have formed
the US Climate Action Partnership. We need only look to California as a prime example of how
aggressive implementation of climate friendly energy efficiency measures has been
accompanied by strong economic growth.
Due to these measures, California’s per capita electricity consumption has been level over the last
30 years while that of the US as a whole has steadily increased. Per capita electricity consumption in
California is now more than 40 percent lower than in the rest of the country. Meanwhile,
from 1990 to 2005 the California economy grew by more than 50 percent in real terms, an
average annual growth rate of 2.9 percent3. And from 2003-2006 California has had an average annual real growth rate of 4 percent,
while nationally the growth rate was 3.1 percent per year.
The results of recent economic studies analyzing the costs of global warming cap and
trade bills have shown that we can cut our global warming pollution substantially in a
manner that is affordable for consumers and the US economy as a whole. A number of
agencies and organizations have made forecasts of the economic impacts of the
Lieberman-Warner Climate Security Act (CSA), which was reported from the Environment and Public Works
Committee on December 5, 2007 and considered on the floor of the Senate during the week of June 2, 2008.
The most important result from these studies of that particular bill is that, regardless of whether
the study is a peer-reviewed academic or government analysis, or a non-peer reviewed industry-backed forecast, one prediction is the
same:per capita household income (as measured by per capita gross domestic product, or GDP) will not
decrease from today’s levels. In fact, all of the projections forecast robust economic growth
and increasing household incomes, despite the limits on global warming pollution contained
in the CSA6. The most pessimistic GDP projection, from the Energy Information Administration (EIA), predicts GDP increasing by
about 73.5 to 74.4 percent between 2007 and 2030. The business-as-usual projection (i.e. growth without climate policy) for this study
is growth of 74.9 percent.
Thus, macroeconomic cost analyses of the Lieberman-Warner bill suggest that climate
change regulation can be enacted at little cost. Even the most pessimistic studies predict
only modest decreases in GDP growth (as opposed to decreases in current GDP levels), and all the studies
exclude the costs of inaction, which will likely greatly exceed these costs. Further, when
provisions in recently enacted energy legislation (EISA) and proposed climate legislation are
included in cost analyses, reductions in GDP growth are almost imperceptible.
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AT Economy DA
Job shifting would allow for no net loss in jobs; new technologies would create
employment and energy cost opportunities
Goo 08 (Michael, Climate Legislative Director, Natural Resources Defense Council; Legislative Proposals to
Reduce Greenhouse Gas Emissions: An Overview; Hearing before the Subcommittee on Energy and Air Quality of the
House Energy and Commerce Committee June 19, 2008 http://energycommerce.house.gov/cmte_mtgs/110-eaq-
hrg.061908.Goo-testimony.pdf )
With regard to employment, high cost studies forecast dire consequences. Again, unrealistic assumptions
are needed to reach these results:
High-cost studies ignore the jobs that will be retained and created in producing and installing low-carbon
technologies, despite the provisions in EISA and CSA discussed above. Again, history serves as a guide:
prior to SO2 regulation, millions of lost jobs were forecasted by industry that never materialized.
High cost studies also predict dire consequences for household energy costs. To arrive at this result, high-
cost studies assume energy efficiency measures that are currently cost-competitive with fossil fuels will not
be increasingly adopted. This assumption is based on the premise that consumers, firms, and the
government are currently using all available cost-effective energy efficiency measures, i.e., there is no
waste in energy consumption patterns. But experts in energy efficiency find significant opportunities for
energy efficiency improvements that are not now widely used due to various market barriers. A recent
report by McKinsey & Company, supported by several major energy companies and others, found that
almost 40 percent of the abatement required by 2030 could be achieved at “‘negative’ marginal cost.” These
costs are shown in Figure 4 below. All of the reduction strategies that are below the line represent strategies
like energy efficiency that actually save money.
Other problematic assumptions in cost studies with higher estimates include:
High-cost studies assume firms have very little flexibility in finding ways to reduce emissions. Compared
to the SO2 trading program, which proved highly flexible in meeting its reduction target without special
provisions increasing firms’ compliance options, proposed CO2 regulation gives firms numerous ways to
satisfy their requirements, such as international trading, offsets, and borrowing. Further, because so many
more sectors are covered under CO2 regulation than was the case for SO2 regulation, the possibilities for
creativity are likely to be substantially higher in a CO2 trading program.
High-cost studies assume rising energy costs will put U.S. products at a competitive disadvantage relative
to other countries’ goods, causing U.S. firms to suffer losses, despite the fact that in the Lieberman-Warner
bill there are generous provisions in the bill to offset higher costs in energy-intensive industries. In addition,
with the exception of a handful of industries, for more than 30 years economists have found no evidence of
firms moving to developing countries for their weaker environmental regulations. The explanation is
simple: labor cost differences overwhelm any potential regulatory cost differences for nearly all firms. For
example, labor accounts for roughly 70 percent of production costs in the United States, sometimes
dwarfing wages in China by a factor of 20 to 1.
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AT Economy DA
Caps would generate revenue from allowances; price increases would act as
incentives for companies and consumers to comply; selling allowances would be
better for the economy
Orszag 08 (Peter R., Director Congressional Budget Office; Implications of a Cap-and-Trade Program for Carbon
Dioxide Emissions; Hring before the Committee on Finance United States Senate; April 24;
http://finance.senate.gov/hearings/testimony/2008test/042408potest.pdf)
A cap-and-trade program, like a tax on CO2 emissions, could raise a significant amount of revenue because
the value of the allowances created under such a program would probably be substantial. For example, in
2012, the value of the emission allowances that would be issued under S. 2191 would be roughly $145
billion, CBO estimates. As the cap that is included in that legislation became more stringent over time, the
value of the allowances would grow. A key decision for policymakers is whether to sell emission
allowances, thereby capturing their value in the form of federal revenue, or give them away.
Under a cap-and-trade program, firms would not ultimately bear most of the costs of the allowances but
instead would pass them along to their customers in the form of higher prices. Such price increases would
stem from the restriction on emissions and would occur regardless of whether the government sold
emission allowances or gave them away. Indeed, the price increases would be essential to the success of a
cap-and-trade program because they would be the most important mechanism through which businesses
and households would be encouraged to make investments and behavioral changes that reduced CO2
emissions.
Policymakers’ decisions about whether to sell or give away the allowances could significantly affect the
overall economic cost of capping CO2 emissions and the way gains and losses from such a program were
distributed among U.S. households. A policy of giving away rather than selling a large share of the
allowances could be more costly to the economy and impose disproportionately large burdens on low-
income households.
• Evidence suggests that the cost to the economy of a 15 percent cut in U.S. emissions (not counting any
benefits from mitigating climate change) might be more than twice as large if policymakers gave
allowances away than if they sold them and used the revenue to lower current taxes on capital that
discourage economic activity.
• In addition, providing allowances free of charge to energy producers and energy-intensive firms could
create “windfall profits” for relatively high income shareholders of those companies, even though the
emission cap would be likely to cause price increases that would disproportionately affect people at the
lower end of the income scale. Further, allocating allowances without charge would not prevent the loss of
jobs in affected industries because such firms would probably reduce their output in response to higher
prices for carbon-intensive goods and services. Those job losses, in turn, would impose concentrated
income losses in some households and communities.
In contrast, if the government chose to sell emission allowances, it could use some of the revenue from
those sales to offset the disproportionate economic burden that higher prices would impose on low-income
households and to provide transitional assistance to dislocated workers.
CBO has concluded that the federal budget should record the value of allowances that are given away by
the government if the recipients of the allowances could readily convert them into cash. In particular, the
budget should record the value of those allowances, when they are distributed, as both revenues and
outlays. That procedure, which CBO has already applied in its estimates for S. 2191, underscores that
giving away allowances is economically equivalent to auctioning the allowances and then dedicating the
proceeds to the recipients.
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AT Fuel DAs
Cap and trade would decrease imports; fuel switching would not take place
Goo 08 (Michael, Climate Legislative Director, Natural Resources Defense Council; Legislative Proposals to
Reduce Greenhouse Gas Emissions: An Overview; Hearing before the Subcommittee on Energy and Air Quality of the
House Energy and Commerce Committee June 19, 2008 http://energycommerce.house.gov/cmte_mtgs/110-eaq-
hrg.061908.Goo-testimony.pdf )
One important and interesting finding is that oil imports drop to 35 percent of total oil supply in the middle
years of the period under study due to both lower demand and the use of CCS for Enhanced Oil Recovery
(EOR) that greatly expands domestic production from existing fields. Oil imports rise again between 2035
and 2050 as the EOR resource (estimated at 50 billion barrels) begins to deplete, although they remain
under 60 percent of total oil supply, as compared to more than 80 percent by 2050 in the BAU case.
The analysis also shows that use of domestic offsets and international credits within the limits in the
Lieberman-Warner legislation would significantly reduce compliance costs, while expanded access to
offsets would be of little additional benefit in terms of reducing costs.
This analysis demonstrates that the impact of strong global warming legislation on energy costs is relatively
modest and manageable, particularly if some of the value of emission allowances is invested to spur
deployment of increased energy efficiency, renewable energy and CCS technology.
Finally, refuting industry claims that major fuel switching would occur with enactment of climate
protection legislation a recent report by M.J. Bradley & Associates shows that the emission reductions
required by the Climate Security Act can be achieved in the electric power sector without fuel switching
from coal to natural gas. The study outlines a realistic scenario where increased reliance on efficiency,
renewable resources like wind, solar, and biomass, and carbon dioxide capture from coal power plants can
achieve the near and mid-term reduction goals of the Climate Security Act without significant changes in
reliance on coal, natural gas or nuclear energy to meet U.S. power needs. The analysis assumes:
* efficiency measures that reduce electricity demand by 10 percent below business-as-usual in 2025,
• renewable sources are deployed at approximately twice the current rates, and
• 65GW of coal with carbon capture and sequestration (CCS) is built by 2025, or about 6 GW a year from
2015-2025.14
A cap combined with focused incentives for these three activities would ensure that the Climate Security
Act's emission reduction requirements can be met with no switching from coal to natural gas.
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Orszag 08 (Peter R., Director Congressional Budget Office; Implications of a Cap-and-Trade Program for Carbon
Dioxide Emissions; Hring before the Committee on Finance United States Senate; April 24;
http://finance.senate.gov/hearings/testimony/2008test/042408potest.pdf)
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Orszag 08 (Peter R., Director Congressional Budget Office; Implications of a Cap-and-Trade Program for Carbon
Dioxide Emissions; Hring before the Committee on Finance United States Senate; April 24;
http://finance.senate.gov/hearings/testimony/2008test/042408potest.pdf)
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________________
**AT Counterplans
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AT Free Market CP
Free market approach not good for cap and trade
Baugh 08 (Robert C, Executive Director AFL-CIO Industrial Union Council and Co-chair AFL-CIO Energy Task
Force, Legislative Proposals to Reduce Greenhouse Gas Emissions: An Overview; Hearing before the Subcommittee
on Energy and Air Quality of the House Energy and Commerce Committee June 19, 2008
http://energycommerce.house.gov/cmte_mtgs/110-eaq-hrg.061908.Baugh-testimony.pdf)
The Stern Commission cited climate change as the greatest market failure in history. Today, open and
unregulated markets have left the Nation in a housing crisis, soaring food costs, world capital markets in
turmoil, and still dealing with the fallout of Enron. Even as this testimony is being delivered Congress is
looking into the role speculation and futures contracts are playing in oil, grain and commodities markets.
Thus, we remain deeply troubled with a simple market-only approach that is open to speculation and
windfall profits by individuals and entities that have nothing to do with carbon emissions.
The open and “unlimited trading” initially proposed in legislation means that anyone, can buy allowances
from a limited and declining pool. With well over 10,000 firms needing allowances, we reject the notion
that letting additional speculators (those not needing to use carbon emission credit) into the market to create
more liquidity is neither necessary nor desired. However, letting these speculators in will create windfall
profits and drive prices higher leaving consumers and industry to pay the price.
In addition, the ability of purchasers to bank these allowances in perpetuity creates additional risks. While
some would argue that unlimited banking might help business decision making, it also may lend itself to
uncompetitive behavior in search of windfall profits or market advantage.
Open access and unlimited banking leaves the system open to predatory and speculative trading practices,
the hoarding of allowances and windfall profits that will fuel volatile pricing in the market. This will have a
direct and detrimental pricing impact on the public, utilities sector, and energy-intensive industries.
The AFL-CIO believes that the goal of any climate change legislation with a cap and trade program is to
move industries and consumers to change behavior and lower carbon emissions.
The Federation recommends a regulated and restricted approach to the trading of allowances. We believe
that:
• Market participation (as purchasers not sellers) should be limited to firms that intend to use the
allowances. With an accurate carbon footprint and a declining pool of allowances, available prices will rise
but not be artificially inflated by speculators.
• The banking of allowances should be limited and regulated to avoid non-competitive and speculative
behavior. There needs to be a limit on the amount of allowances any particular firm can bank related to its
actual needs. In addition, there should be a "time certain" by which a firm must use the allowances or revert
back to the auction pool. A firm would always be able to reenter the market and bank a limited amount for a
limited duration. These steps will help create a more certain, less speculative, trading environment.
• The allowances and market will be created for buyers and sellers who need to use them. Purchasing and
retirement of allowances should be limited to entities regulated by state performance or efficiency standards
in any sectors covered under the federal cap-and trade program seeking to meet state standards more
stringent than any comparable federal standards, by purchasing and retiring federal allowances.
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AT International Actor CP
US must play key role in reduction of CO2 emissions
Baugh 08 (Robert C, Executive Director AFL-CIO Industrial Union Council and Co-chair AFL-CIO Energy Task
Force, Legislative Proposals to Reduce Greenhouse Gas Emissions: An Overview; Hearing before the Subcommittee
on Energy and Air Quality of the House Energy and Commerce Committee June 19, 2008
http://energycommerce.house.gov/cmte_mtgs/110-eaq-hrg.061908.Baugh-testimony.pdf)
Chairman Boucher, on behalf of the 9 million members of the AFL-CIO, I want to thank you and the members of the Subcommittee
on Energy and Air Quality of the House Energy and Commerce Committee for the opportunity to testify this afternoon on this
important subject. Our comments will focus on the Federations climate change initiatives in relation to the Climate Security Act of
2008 (S. 3036). Sponsored by Senators Boxer, Lieberman and Warner; the Investing In Climate Action and Protection Act (H.R. 6186)
sponsored by Representative Markey; the Safe Climate Act (H.R. 1590) sponsored by Representative Waxman; and the Low Carbon
Economy Act (S. 1766) sponsored by Senators Bingaman and Specter.
it is time for our nation to take bold steps to meet the 21st Century
The AFL-CIO believes
challenges related to climate change. Scientific evidence has confirmed that human use of
fossil fuels is undisputedly contributing to global warming, causing rising sea levels,
changes in climate patterns and threats to coastal areas. Unrestrained growth in
greenhouse gas emissions poses critical economic and environmental issues. This
challenge is an opportunity to enact an energy policy that will result in a cleaner planet,
greater energy efficiency and the revitalization of our manufacturing base.
The world is looking to the United States for leadership because we are the most energy
intensive nation in the world and one of its leading emitters of greenhouse gas. Our
nation can lead a new technological revolution in the way energy is generated and used
that can be of benefit to the world as a whole and serve as a foundation for the revival of
the middle class in the United States. But to accomplish this, we need a strategic
approach centered on domestic investment in new technologies and good jobs. And we
need to lead in fostering a shared international response to this issue.
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AT States CP
USFG legislation should supercede any conflicting state legislation
Baugh 08 (Robert C, Executive Director AFL-CIO Industrial Union Council and Co-chair AFL-CIO Energy Task
Force, Legislative Proposals to Reduce Greenhouse Gas Emissions: An Overview; Hearing before the Subcommittee
on Energy and Air Quality of the House Energy and Commerce Committee June 19, 2008
http://energycommerce.house.gov/cmte_mtgs/110-eaq-hrg.061908.Baugh-testimony.pdf)
Many states have enacted or are considering measures to reduce greenhouse gas emissions. This includes
state or regional cap-and-trade programs, performance or efficiency standards relating to autos, utilities,
fuels and other sectors covered under the cap in the federal legislation, as well as, initiatives in areas
outside of the cap (e.g. building codes, conservation, transportation planning).
The Boxer-Lieberman-Warner, Markey and Waxman bills all preserve existing state authority to regulate
greenhouse gases. However, the Boxer-Lieberman-Warner and Markey bills also supersede pending
litigation over the scope of that authority, and make it clear that California and other states may regulate
auto CO2 tailpipe emissions. In addition, the Boxer-Lieberman-Warner, Markey and Waxman bills all fail
to deal with the important issue of how state climate change measures - whatever their scope - will
interface with the federal cap-and-trade program
In exchange for the establishment of the federal cap-and-trade program, the states should be preempted
from having state or regional cap-and-trade programs affecting the sectors covered under federal
legislation. This would prohibit state programs that cap emissions from the electric power, transportation or
industrial sectors, or require the purchase, sale or retirement of allowances in these sectors. This is
necessary to prevent regulated entities from having to submit duplicative allowances for the same ton of
carbon, and to establish a level national playing field for an economy-wide emissions trading program.
The federal cap-and-trade program should be the exclusive federal authority for dealing with greenhouse
gas emissions from those sectors covered under the cap. This is necessary to prevent EPA from issuing
regulations that impact these sectors and have the effect of overriding the decisions made by Congress in
the cap-and-trade program concerning the stringency of the federal cap, the point of regulation, and the
distribution of economic burdens. EPA should retain any existing authority it may now have under the
Clean Air Act to regulate in sectors that are outside the cap.
Conclusion
The AFL-CIO believes climate change is both a crisis and an opportunity for our nation. By taking the right
legislative steps – timelines, standards and a safety valve sensitive to the economic impacts on business,
workers and communities, assuring that our investments capture the intellectual property of cutting edge
technology, by producing these new technologies and goods domestically, and engaging the developing
world in the solution -- we can have a cleaner planet, greater energy efficiency and a revitalized
manufacturing base. The Federation looks forward to working with Congress to achieve these goals.
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AT Allowances CP
Cap and trade prevents windfall profits; generates funds that could be used for
energy efficiency and development; places greater controls on large corporations
Figdor 08 (Emily, MPH Federal Global Warming Program Director Environment America; Legislative Proposals to
Reduce Greenhouse Gas Emissions: An Overview; Hearing before the Subcommittee on Energy and Air Quality of the
House Energy and Commerce Committee June 19, 2008 http://energycommerce.house.gov/cmte_mtgs/110-eaq-
hrg.061908.Figdor-testimony.pdf )
Any response to global warming will have an impact on American families. All Americans will benefit
from a cleaner and more efficient economy that is less dependent on foreign oil. But some families may
also experience increased burdens.
It is important, therefore, that any climate policy is designed to maximize the benefits American families
will reap in terms of cleaner air, improved energy efficiency, and greater energy independence, and
minimize the costs they experience in terms of higher energy bills.
To use our resources most effectively, any emission trading program used to comply with a global warming
emission cap must auction, rather than give away, emission allowances, and use the proceeds of that
auction to accelerate the transition to a clean energy economy and reduce the cost of the program to
consumers.
Economic research shows that auctioning allowances (along with “recycling” some or all of the revenue
from the auction back to the public) is a less expensive way to achieve emission reductions through cap-and
trade than a free distribution system. For example:
• A study by Resources for the Future estimated that an auction and revenue recycling approach was
roughly half as expensive to society as an allocation system based on “grandfathering” of existing emitters.
Total savings under the auction approach increase as emission-reduction targets become more stringent.xiv
• These results are supported by evidence from other economic modeling efforts suggesting that allowance
auctions, combined with recycling of auction revenues, can allow for emission reductions at lower overall
cost and possibly promote more innovation and better investments in technology.xv
The conclusion that auctioning allowances is less costly to society than giving them away seems to defy
common sense. After all, consumers will mainly see the impact of a cap-and-trade system in higher prices
for energy and some products. If polluters are given allowances for free, one might think that they would
not need to pass the cost of compliance down to consumers, thus saving consumers money.
However, economic research and practical experience show that giving away allowances to polluters
represents the worst of both worlds. Consumers pay more for energy or products as the cost of those
products comes to reflect the cost of global warming pollution – just as they would under a system in which
allowances are auctioned. But instead of the government gaining revenues from allowance auctions, which
could then be used in a variety of ways to reduce the cost of the program, polluters could benefit by
receiving unjustified “windfall” profits – even if they take no action at all to reduce their global warming
emissions.
Windfall profits are a real and significant concern. In the United Kingdom, for example, power producers
have netted an estimated £1 billion (about $1.9 billion) in windfall profits through participation in the
European Union’s Emission Trading Scheme.xvi
By auctioning allowances, we can ensure that precious dollars are not siphoned away to unjustly pad the
profits of Big Oil and other fossil fuel industries. At the same time, we can redirect those dollars toward the
achievement of two important goals: helping Americans make the transition to a clean energy economy, and
making that transition easier by returning some of the money to those who face the greatest burden from
energy costs, particularly low-income consumers.
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Inaction Bad
Inaction will lead to catastrophes; persons will need to be prepared for them
Goo 08 (Michael, Climate Legislative Director, Natural Resources Defense Council; Legislative Proposals to
Reduce Greenhouse Gas Emissions: An Overview; Hearing before the Subcommittee on Energy and Air Quality of the
House Energy and Commerce Committee June 19, 2008 http://energycommerce.house.gov/cmte_mtgs/110-eaq-
hrg.061908.Goo-testimony.pdf )
Inaction on climate change also increases the chance of an abrupt, irreversible catastrophe, which would be
much worse than the predictable costs of inaction discussed above. This point is emphasized in the Stern
Review, and the economic analysis behind it is supported by recent research by Harvard University
economist Martin Weitzman. The collapse and complete melting of either the Greenland or West Antarctic
ice sheets would cause sea levels to rise by 20 feet or more, causing devastation of coastal cities and
regions where a large fraction of the American population lives. No one can say for certain at what
temperature this will occur, but it becomes more likely as the world warms. We are taking a gamble, where
the stakes are unbelievably high and the odds get worse the longer we stay on our current course.
In the future, global warming will cause drastic changes to the planet’s climate, with average likely
temperature increases of as much as 13 degrees Fahrenheit in most of the United States and 18 degrees
Fahrenheit in Alaska over the next 100 years. This will change the nature of where Americans live. By
2100, New York City will feel like Las Vegas does today and San Francisco will have a climate comparable
to that in New Orleans. In 2100, Boston will have average temperatures similar to those in Memphis,
Tennessee today.
No sensible person bets his or her home on a spin of the roulette wheel. But inaction on climate change is
betting the only home humanity has. Who knows, we might get lucky and win the bet; a few scientists still
doubt that hurricanes are getting worse. But the consequences of a bad bet are enormous. Without arguing
that Katrina was “caused” by global warming, the misery it caused the people of Louisiana and Mississippi
and the continuing economic turmoil it produced are wake-up calls that show how much harm a disrupted
climate can produce.
A catastrophe, such as 20 feet or more of sea level rise, is not certain to occur; we don’t know enough today
to say how quickly we may lock in these catastrophic events with current emission paths. But homeowners
buy fire insurance, although they are not likely to have a fire next year; healthy young parents buy life
insurance to protect their children, although they are not likely to die next year. The most catastrophic
dangers from climate change are so immense that even if we believe the chance of catastrophe is small, it is
irresponsible to ignore them. Taking action against climate change is life insurance for our home planet,
needed to protect everyone’s children.
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**Negative
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No Rapid Warming
National security concerns heighten with rapid change; such change not likely
Lane 08 (Lee, Resident Fellow American Enterprise Institute; National Security Implications of Climate Change;
Hearing of The Permanent Select Committee on Intelligence and the House Select Committee on Energy Independence
and Global Warming; June 25, 2008
http://globalwarming.house.gov/tools/2q08materials/files/0067.pdf)
The above discussion focuses on gradual and continuous climate change. Faster change cannot, however, be entirely ruled out. In the
past, climate has sometimes shifted in the course of a few decades. This has led to at least
one effort to identify the national security effects of hypothetical abrupt high impact
climate change. The problem with such exercises is that the science is too uncertain to allow for much
useful analysis or policy planning. The experience of the 2003 report commissioned by the Pentagon’s
Office of Net Assessment illustrates the point. In this report, the authors asserted: “Rather than
decades or even centuries of gradual warming, recent evidence suggests that a more dire climate
scenario may actually be unfolding.”
The report proceeded to sketch a series of Dantesque consequences. Of these, perhaps the most
startling was that North America and Europe would be plunged into a climatic arid deep freeze.
These predictions of imminent doom, however, drew scathing comments from the scientific
experts, and the latest IPCC report finds that the consensus of the models is that Europe,
far from freezing, is likely to continue warming throughout the 21st Century. It is hard to
see how repeating the experience of the 2003 report is going to provide a more useful
guide to future policy than emerged from that effort.
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Solvency—No Technology
Technologies not advanced enough yet to solve for warming; lag times will take
decades
Lane 08 (Lee, Resident Fellow American Enterprise Institute; National Security Implications of Climate Change;
Hearing of The Permanent Select Committee on Intelligence and the House Select Committee on Energy Independence
and Global Warming; June 25, 2008
http://globalwarming.house.gov/tools/2q08materials/files/0067.pdf)
Without new technologies that lower the costs of cutting emissions, it seems hard to
believe that a global consensus on reducing emissions is likely to form. Fortunately, the long
run outlook for new technology is fairly bright. Past funding for research in sciences that are potentially
relevant to greenhouse gas reductions may mean that many new discoveries are already, “in the pipeline.” And analysis done
for the U.S. Department of Energy has shown that speculative, but plausible, progress on
some key technologies could reduce the costs of stabilizing greenhouse gas
concentrations by, literally, trillions of dollars.
A closer look, though, also suggests caution and patience. The technological solutions to climbing
levels of greenhouse gases may be slower than we would hope and less than perfect when
they arrive. It is worth examining four important reasons for believing that patience will be required.
First, solutions will require new scientific knowledge, not just new gadgets. The widely cited
Hoffert et al 2002 Science article, observed that existing technologies and the expected extensions of
them were wholly inadequate to the task of stabilizing greenhouse gas concentrations. The
article also argued that nothing less than multiple large breakthroughs in basic science could
create the revolutionary new technologies that were needed. However, ex ante, the outcome of R&D is
notoriously uncertain. Will the progress envisioned by Edmonds materialize? If it does, when? There is far more doubt than would be
the case were we considering the simple extension of existing technologies.
Second, a long lag often occurs between the discovery of new scientific knowledge and its
first use in new processes or products. Another lag is common before the latter succeed in an engineering and
economic sense. And the perfected innovation may take a long while to diffuse through the
economy. Economist Nathan Rosenberg has explained very clearly why the process is so time consuming, but the upshot is that
the full economic payoff of discoveries in basic science is often realized only after
several decades.
Third, in the case of climate, the lags are likely to be especially long because the
innovations must diffuse across most of the globe. Innovations made in America or Japan
may not fit market and institutional conditions in China and India until they have been adapted
to local conditions. Those conditions may differ widely from those prevailing where the invention originated. In climate
technology, therefore, we might expect the diffusion process to be unusually long. An approach like
carbon capture and storage, the use of which depends completely on government policy, may have an especially hard time in countries
like China and India, where governments are most unlikely to foster it.
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Solvency—No Technology
Incentive for R&D is not as good as it could be; don’t know where the technology
needs to go
Lane 08 (Lee, Resident Fellow American Enterprise Institute; National Security Implications of Climate Change;
Hearing of The Permanent Select Committee on Intelligence and the House Select Committee on Energy Independence
and Global Warming; June 25, 2008
http://globalwarming.house.gov/tools/2q08materials/files/0067.pdf)
Fourth, at this point, we do not know what technologies are likely to meet the need. It may be space-
it
based solar power. It may be nuclear with fuel recycling. It may be microbes that produce fuel. Or, to cite Jae Edmonds again,
may be something of which we cannot conceive until a future breakthrough in basic
science opens our eyes to its possibility. One implication is that the problem here is quite
different from that involved in the Apollo or Manhattan Projects. There, the scientists had
a relatively clear concept of what they were looking for. Here, our vision of the goal is
much cloudier.
However, many of the innovations needed to solve the climate problem depend on new
discoveries in basic science. The economic rewards of such discoveries, although they can be very
large for society as a whole, are notoriously difficult to capture for the organization that makes the
discovery. As a result, a large gap develops between the level of private R&D investments
and the level that would be optimal for society as a whole. Patents, tax credits, and
subsidies are designed to remedy the resulting R&D shortfall, but apparently they are
only partly successful. The gap between actual R&D investment and the optimal level
appears to be large. In the U.S., for example, R&D investment is, according to some estimates, only about a quarter
of the optimal level.
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Biofuels Bad
Biofuels take away potential food crops; forces choices by farmers in other countries
as well as the US; exacerbates problems it is supposed to solve
Lewis 08 (Marlo, Senior Fellow, Competitive Enterprise Institute; National Security Implications of Climate
Change; Hearing of The Permanent Select Committee on Intelligence and the House Select Committee on Energy
Independence and Global Warming; June 25, 2008;
http://globalwarming.house.gov/tools/2q08materials/files/0068.pdf
Today’s food price inflation has several causes including a weak dollar, high oil prices, drought, and
surging demand in India and China. But one factor fueling this crisis is a global warming policy—
government subsidies and mandates for corn ethanol production. Biofuels provide only about 1.5 percent of
total motor fuel liquids, yet they accounted for almost half the increase in global consumption of major
food crops in 2006-07, according to the World Bank. More aggressive efforts to replace petroleum with
biofuels could literally starve the hungry, creating chaos and conflict.
Schwartz and Randall warn that abrupt climate change will create millions of environmental refugees
fleeing across borders to escape from hunger and water shortages. Millions of illegal migrants already cross
the U.S. southern border from Mexico. Poor Mexicans obtain 40 percent of their daily calories from
tortillas, and the U.S. ethanol program, by inflating the price of corn, contributed to a “tortilla crisis” in
Mexico. Burning food in gas tanks exacerbates the poverty that is a root cause of illegal migration. Expect
biofuel refugees as the mandates ramp up. Schwartz and Randall warn that abrupt climate change, by
intensifying winter storms and expanding sea ice, could reduce the availability of gas and oil, leading to
conflict over dwindling resources. Well, this implies that non-abrupt climate change, which is far more
likely, could make gas and oil more available by opening up the long-sought Northwest Passage.
More importantly, since Kyoto-style policies aim to restrict access to fossil fuels, they too have the
potential to engender conflicts over energy. Cap-and-trade programs force participants to compete over
diminishing shares of a shrinking pie. That is how cap-andtrade is supposed to work. When it doesn’t work
that way—as in phase one of the European Emissions Trading System—it is because companies and/or
governments are cheating.
As noted earlier, Schwartz and Randall warn that abrupt climate change could expand the use of nuclear
power and endanger peace via proliferation. My guess is that a 50-percent global emission reduction target
and a global ban on new coal plants would grow the nuclear industry faster than would abrupt climate
change. I’m not fearful of nuclear power, but most environmental groups remain staunchly anti-nuke. Do
they really suppose that poor nations will consent to ban coal as an electricity fuel and not demand access
to nuclear power?
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No Rapid Warming
Abrupt climate change scenarios overestimate impact of current condition; US
would leadership is continue to advocate global change policies
Lewis 08 (Marlo, Senior Fellow, Competitive Enterprise Institute; National Security Implications of Climate
Change; Hearing of The Permanent Select Committee on Intelligence and the House Select Committee on Energy
Independence and Global Warming; June 25, 2008;
http://globalwarming.house.gov/tools/2q08materials/files/0068.pdf
The likely response to the foregoing is that even the most aggressive Kyoto-style policies would not
endanger world peace and global stability as much as would abrupt climate change. I frankly do not know.
Mandating 80- and even 90-percent reductions in U.S. emissions by 2050, as Vice President Gore
advocates, mandating a 50-percent cut in emissions worldwide, banning new coal plants around the world,
and attempting to enforce these policies through trade sanctions would, in my judgment, would create
endless conflicts and destroy America’s leadership in the world.
But let’s stipulate for the sake of argument that abrupt climate change is potentially a greater security threat.
Nonetheless, if the Schwartz-Randall scenario is implausible, we would be unwise to adopt geo-politically
risky policies in the hope of averting it. Schwartz and Randall postulate that global warming increases the
amount of fresh water entering the North Atlantic from glaciers, the Greenland ice sheet, rainfall, and river
discharges. In their scenario, as the surface of the North Atlantic becomes fresher, it also becomes less
dense. The less dense it becomes, the more slowly it sinks. Eventually—Schwartz and Randall postulate as
soon as 2010—it sinks too slowly to pull warm water up behind it from the tropics. The Atlantic branch of
the thermohaline circulation, or THC,21 popularly known as the oceanic “conveyor belt,” shuts down.
Average annual temperatures fall by 5 degrees Fahrenheit over Asia and North America and up to 6 degrees
Fahrenheit in Europe.”
How likely is this? Schwartz and Randall say this scenario is “plausible” because rapid cooling happened
twice before in our current inter-glacial period, the Holocene. Some scientists believe that a sudden
infusion of fresh water may have disrupted the conveyor belt and caused cooling events 12,800 years ago
and 8,200 years ago. But in both cases, this happened when giant ice dams—relics of the previous ice age
—burst, allowing huge fresh water lakes to drain swiftly into the North Atlantic. An estimated 9,500 cubic
kilometers of fresh water poured into the North Atlantic 12,800 years ago, and more than 100,000 cubic
kilometers 8,200 years ago. The amount of ice melt from Greenland today is a comparative trickle—about
220 cubic kilometers a year.
Is the THC slowing down? In 2005, Harry Bryden and two colleagues at the UK’s National Oceanography
Center reported a 30 percent decline in the THC’s northward flow—only to announce one year later, after
more data came in, that this was a false alarm.
In 2006, Christopher Meinen and two colleagues at the Atlantic Oceanographic and Meteorological
Laboratory in Miami found no change in the strength of the THC since the late 1980s. Similarly, a team of
German scientists headed by Friedrich Schott found no change over the past decade.28 Another group of
mostly German scientists found an actual strengthening of the THC since 1980.
In its Fourth Assessment Report, the Intergovernmental Panel on Climate Change (IPCC) summarized the
scientific literature thusly: “Over the last 50 years, no coherent evidence of a trend in the strength of the
meridional overturning circulation [THC] has been found.”
Finally, I would note that not all scientists believe that a shutdown of the Atlantic THC would have the
catastrophic effects on Northern Hemisphere temperatures that Schwartz and Randall postulate. Richard
Seager of Columbia University’s Lamont- Doherty Earth Observatory argues that the key factor sustaining
Europe’s mild winters is a difference in the warmth of the prevailing winds that blow across northeastern
North America and Western Europe. During the winter, “South-westerlies bring warm maritime air into
Europe and north-westerlies bring frigid continental air into north-eastern North America.” If this finding is
correct, then Europe should continue to enjoy mild winters even if global warming weakens the THC.32
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Politics Link—Unions
Union task force identifies and supports cap and trade
Baugh 08 (Robert C, Executive Director AFL-CIO Industrial Union Council and Co-chair AFL-CIO Energy Task
Force, Legislative Proposals to Reduce Greenhouse Gas Emissions: An Overview; Hearing before the Subcommittee
on Energy and Air Quality of the House Energy and Commerce Committee June 19, 2008
http://energycommerce.house.gov/cmte_mtgs/110-eaq-hrg.061908.Baugh-testimony.pdf)
Over the past 18 months, our interaction with Congress and many other businesses, industry, environmental
and international labor organizations, has helped evolve and sharpen the thinking of the AFL-CIO Energy
Task Force. The February 2007 report by the AFL-CIO Energy Task Force recognized that “reliable and
affordable electrical energy, is the lifeblood of the manufacturing, transportation, construction and service
industries;” …and that we must “maintain diversity in the electric utility industry, by retaining all current
generating options, including fossil fuels, nuclear, hydro and renewables, to ensure a stable, reliable and
low-cost supply of electricity for the United States.”
That report was also driven by our belief that a strong and diverse manufacturing base is in the national
interest. This sector is in a deep and ongoing crisis. Since 1998, some 3.9 million manufacturing jobs were
lost and 35,000 manufacturing facilities closed while the nation amassed trillion of dollars in trade deficits.
The offshoring of skilled work, R&D, design, engineering and more continues to erode our innovative and
technical capacities. Solving the climate change crisis is an opportunity to address the manufacturing crisis
The AFL-CIO supports a new industrial policy, and an environmental economic development policy, which
places manufacturing and trade at the center of a green economy program. New investment in a sustainable
energy infrastructure must be structured to create good jobs and ensure stable energy prices. These must be
supported by effective trade policies. Without these key elements, there is a serious risk of driving good
jobs offshore into nations without emission regimes and far less carbon efficient production.
A set of environmental economic development principles has helped guide the Federation’s efforts:
1) Our Nation should embrace a balanced approach that ensures diverse, abundant, affordable energy
supplies, creates good jobs for America’s workers and improves the environment.
2) Our Nation should adopt an economy-wide cap-and-trade program that is transparent and requires all
sectors to come to the table to reduce their carbon emissions. It should have timetables and standards that
allow for the development and deployment of new technology and should help finance the new
technologies that can provide clean energy at prices close to conventional sources.
3) Energy incentives and investments by the Federal Government must be based on a set of economic
development principles that clean the environment and create jobs but will not encourage offshoring of
manufacturing jobs.
4) Investments must be used to identify, develop and capture cutting-edge technologies and to manufacture
and build these technologies here for domestic use and export.
5) The international component of any climate change cap-and-trade program must provide both incentives
and a border mechanism enforced through a trade regime, to ensure that major developing nations, such as
China and India, participate.
6) There must be adequate resources to both address the transition needs of workers and communities
adversely affected by legislation, as well as, financial assistance to assist low and moderate income
families.
The AFL-CIO is here today to reinforce these principles with the Energy and Air Quality Subcommittee,
just as we have in every discussion held with staff and members of Congress.
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Politics Link—Partisanship
Markey legislation (iCAP) has led for call to bring issue to table; issue is seen as key
issue of disagreement between Republicans and Democrats
Samuelsohn 6/5/08 (Darren, Greenwire senior reporter, House GOP spoiling for a cap-and-trade floor fight,
SPOTLIGHT Vol. 10 No. 9, L/N
House Minority Leader John Boehner dared Democrats yesterday to begin a global warming floor debate to
help spotlight differences between the parties headed into Election Day. Capitalizing on a chaotic week in
the Senate on the same issue, the Ohio Republican wrote House Speaker Nancy Pelosi (D-Calif.) urging her
to move before the Fourth of July recess to consider a major global warming bill introduced by Rep. Ed
Markey (D-Mass.)."While I disagree fervently with the logic of raising energy costs while consumers
already face astronomical prices for gasoline, I respect your prerogative as Speaker to follow through on
your promise and schedule a vote on the bill," Boehner wrote, citing Pelosi's 2007 pledge to consider cap-
and-trade legislation in the 110th Congress. "And frankly, I welcome the debate," Boehner added. "At a
time when families are reconsidering their summer travel plans because of the record-high gas prices, I
believe there is no clearer distinction between the two parties in Congress than on this issue." Pelosi
spokesman Drew Hammill did not respond directly to the Republican leader's call for a summertime
climate debate. Instead, he cited the ongoing legislative process led by House Energy and Commerce
Chairman John Dingell (D-Mich.) that has so far amounted to a series of hearings and white papers over the
last 17 months on the obstacles behind crafting a cap-and-trade plan. The committee is "taking the lead in
developing climate change legislation in the House," Hammill said. "This is an extremely complicated
issue, and we will continue to move forward as quickly as possible, regardless of the outcome of the current
Senate debate." Senate action on a climate bill disintegrated this week after Republicans placed procedural
hurdles in front of Democrats. The legislation is likely to fall from the chamber's floor agenda by next
week. Cap-and-trade plan eludes Pelosi Pelosi came to power in January 2007 with a cap-and-trade plan
on top of her agenda. But the energy bill that President Bush signed into law last December did not include
it, instead focusing on the first increase in decades to the nation's automobile fuel efficiency standards. In
recent weeks, Dingell and House Energy and Air Quality Subcommittee Chairman Rick Boucher (D-Va.)
have tried to engage GOP panel members on cap-and-trade legislation. But they said they have gained little
ground, pinning the blame on Rep. Joe Barton (R-Texas), the committee's ranking member and a longtime
skeptic about science linking humans to global warming. "There still is not a full commitment to write the
cap-and-trade bill on the Republican side," Boucher said in an April interview. "That's candidly what we
need if we're going to act this year. We don't have that. I'm working to try to achieve it." Barton has
countered that he is in the minority and has no control over the agenda. If Dingell and Boucher wanted to
move a bill, they could, he said."I think what Dingell and Boucher both are looking at is the economy and
how shaky things are and high energy prices," Barton said in an April interview. "If you were them, would
you put a cap-and-trade bill together right now? I mean, I don't think they believe in political suicide. I
think the steam has gone out of this issue for this Congress." Coincidentally, Markey introduced his bill
yesterday calling for an 80 percent cut in heat-trapping greenhouse gas emissions, a measure he has dubbed
"iCAP." "America has been waiting for years for the Republicans to finally come to the table and discuss
global warming," Markey spokesman Eben Burnham-Snyder said. "Before the discussion starts, hopefully
the Republicans will read iCAP so they can discover that 80 percent of all American households are
protected against rate hikes by the energy industry and that free market principles are used to reduce
emissions."
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Study CP
Further study needed to examine impact on energy intensive industries
Baugh 08 (Robert C, Executive Director AFL-CIO Industrial Union Council and Co-chair AFL-CIO Energy Task
Force, Legislative Proposals to Reduce Greenhouse Gas Emissions: An Overview; Hearing before the Subcommittee
on Energy and Air Quality of the House Energy and Commerce Committee June 19, 2008
http://energycommerce.house.gov/cmte_mtgs/110-eaq-hrg.061908.Baugh-testimony.pdf)
There is far too little known about the impact of a cap and trade program on energy intensive industries
such as steel, aluminum, paper, chemicals, airlines and others. The AFL-CIO has raised this issue
consistently through the stakeholder process on the Senate bills. The Federation encouraged a set of
economic impact studies that the National Commission on Energy Policy has commissioned for the steel,
aluminum, paper and chemical industries. These will be finished within the next few weeks. The Boxer-
Lieberman-Warner legislation recognized this concern by making additional free allocations of allowances
available for these sectors. The NCEP studies will be a valuable source of data to help inform future
decision-making. There needs to be additional analysis of the economic impact on other sectors such as the
aviation industry. The Airline Pilots Association points out the acute situation of this sector and its price
sensitivity. Record fuel prices have wreaked havoc on the airline sector with four air carriers having ceased
operations and more than 9,000 airline employees having lost their jobs this year and thousands more
facing furlough this fall. The industry like others has a record of accomplishments in reducing GHG and
conserving fuel, but fuel costs, industry consolidation and a weakening economy will continue to threaten
our national aviation system for the foreseeable future. Congress needs to be better informed on the impact
of cap and trade and performance of energy intensive industries so that these factors can be taken into
consideration when crafting legislation.
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