… & What We Can Learn From Acid Rain by Terry Black, co-owner, Green Way Supply (www.greenwaysupply.net)
Twenty years ago headlines told of an out of control threat to our environment; reports and studies came out almost daily about the need for immediate action; lakes and rivers in the eastern US were threatened with permanent damage; and Congress was criticized for inaction. The funny thing is that you don’t hear much about acid rain anymore. Why? President George H.W. Bush and Congress implemented a simple cost-effective solution, known as cap and trade. Today, we have an opportunity to follow that example and use that same system to stop global warming.
How does cap and trade work? Under a cap and trade system, the government sets a limit on the total tons of pollution that can be emitted to the atmosphere. Individual companies are given allowances equal to the amount of pollution they are permitted to emit. If a company reduces its emissions below its number of allowances they can sell the extra allowances to another company and make a profit. Businesses that find it more expensive to reduce emissions at their facility may purchase allowances from another source that can make cheaper emission reductions. Companies can also save any unused allowances for future use. The important part is: overall pollution goes down. To enforce the system, businesses that exceed their pollution limits are penalized under the system with fines. What makes the system cost effective is that companies have the flexibility to decide when, where, and how to reduce emissions.
Cap and trade enables the market to reward the most economically efficient methods, without government dictates or controls. When this system was applied to combat acid rain it targeted reducing sulfur dioxide emissions, which were a primary cause of acid rain. Although there was initial skepticism, the program met its pollution level goals quicker than expected and for a quarter of the original estimated cost. A cap and trade system that addressed global warming would focus on reducing greenhouse gases such as carbon dioxide emissions, which are the chief cause of global warming. In addition to combating global warming, this would also create new economic opportunities. The cap on pollution levels would spur new investments in developing and producing more energy-efficient technology. By encouraging this market we can bring new manufacturing jobs to small towns and rural communities across Indiana.
For example, according to a report by the Center for American Progress and the Political Economy Research Institute, Indiana could gain 43,000 jobs through a strong green economic recovery program. These jobs would be found in areas such as solar and wind power, the retrofitting of buildings to improve energy efficiency, expanding mass transit, constructing “smart” electrical grid transmissions and next-generation biofuels. Companies in Central Indiana like EnerDel, I Power Energy Systems, Hoosier Glass, GenFlex Roofing Systems and our business – Green Way Supply in downtown Indianapolis, which offers customers earth-friendly building products – could further grow and expand.
Farmers would also enjoy the benefits of increased demand for the crops they grow that could be used to produce biodiesel, low-carbon ethanol, and other cleaner fuels. They could also get credit for farming practices that reduce emissions and store carbon in soils. Using energy efficient technology and renewable fuels will also increase our energy security.
Currently, America imports nearly 60 percent of the oil we use. And at the current rates of growth, our oil demand will rise more than 50 percent in the next 20 years. Much of this demand will likely be met by importing more oil from countries that are unstable or even hostile to US interests. Twenty years ago, President H.W. Bush and Congress took decisive action to thwart acid rain’s threat to our environment. Today, President Barack Obama has taken the important first step toward addressing the growing problems associated with global warming by supporting investments in clean energy and green job growth.
Locally, Congressman Andre Carson has shown he is a leader in this discussion of how climate change legislation can also boost Indianapolis’ economy.
At a recent green jobs forum held at the Keep Indianapolis Beautiful headquarters, Congressman Carson said, “Energy policy and restarting our economy go hand in hand. A lot of people think about energy policy as primarily an environmental issue. And protecting and cleaning up our environment is incredibly important. But investing in a low carbon, green economy is also one of the best ways to reinvigorate our economy and create new, good paying jobs here at home – particularly in the hard hit manufacturing and construction sectors.” It is hard to overstate the importance of having the strong support of President Obama, Congressman Carson and other key leaders in Congress in favor of global warming action this year. The cap and trade system worked extraordinarily well once before, and with your help, and that of Indiana’s Congressional delegation, it can again. We can stave off the worst effects of global warming and Indianapolis-area businesses can get in on the action and become the manufacturers and marketers of the clean technologies of the future.
Tags: cap and trade, clean technologies, Energy Policy, global warming, immision reduction, Keep Indianapolis Beautiful
