Saturday, June 27, 2009

Cap and Trade Central to Climate change Bill.

  • The main provisions of the Cap and Trade bill is that it set limits on the green house gas emissions, the main cause of global warming.
  • It also aims to reduce the air pollution levels to 17% by 2020 and more than 80% by 2050 as compared to 2005 levels.
  • The bill aims to create a system to buy and sell emission permits that permits the beared to emit carbon dioxide or other green house gases into the atmosphere. Power generation plants and factories would need to apply for emission permits or they would need to offset their emissions by other measures such as planting of trees etc.
  • With a view to obtain the votes of the Congress the government is planning to issue the permits free initialy and subsequently they may be sold at auctions.
  • The Cash and Trade Bill also requires the states to generate their own electricity requirements through renewable sources, mainly wind and solar energy to be given more priority.
  • The White House and The House of Democratic Leaders call this a jobs bill as t his would create new investments in solar and wind energy and projects with less emissions . The opposition leaders opine that the bill would reduce jobs as energy prices would shoot up. The manufacturers feel that the indutries may shift to China or India where energy can be produced at cheaper prices using coal.
  • According to govt eources the bill would increase the cost an American famly by$200 where as according to others the bill would increase the cost of living of an American household by$3000 a year.
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