'To truly transform our economy, protect our security, and save our planet from the ravages of climate change, we need to ultimately make clean, renewable energy the profitable kind of energy,' Mr Obama told lawmakers in his first-ever address to Congress. -- PHOTO: AGENCE FRANCE-PRESSE
WASHINGTON - US PRESIDENT Barack Obama is banking on a landmark carbon gas cap-and-trade system to both fight climate change and pump US$80 billion (S$120 billion) into the Treasury purse to fund renewable energy programmes.
The innovative programme - similar to one already in place in Europe - would rev up US efforts against global warming by reducing the output of carbon dioxide and other polluting gases, while raising direly-needed revenue.
The administration's proposed program was part of a US$3.55 trillion budget unveiled by the president on Thursday, which outlines a cap-and-trade system which would limit emissions of greenhouse gases by manufacturers, and permit companies to trade the right to pollute to other manufacturers.
The programme forces heavy polluters to buy credits from companies that pollute less, creating financial incentives to fight global warming.
The approach - fiercely opposed by the George W. Bush administration as too costly for companies - penalises companies that emit the most greenhouse gases, while rewarding the country's 'greenest' business enterprises. Although the United States is the world's largest emitter of greenhouse gases, Mr Bush walked away from the 1997 Kyoto treaty which aimed to combat climate change.
Mr Obama now is set to do a brisk about-face on US climate change and energy policy. The new US president would set aside as much a US$15 billion per year for the development of 'clean energy' technologies like wind power and solar energy, doubling America's supply of renewable energy in the next three years.
Meanwhile, Americans would receive some US$63 billion in tax breaks and other assistance from the sale of these polluting rights in the form of tax breaks for individuals and businesses converting to clean energy technology.
In a major speech to the US Congress on Tuesday, Mr Obama said legislation setting market-based caps on the emissions of carbon gases was overdue.
'To truly transform our economy, protect our security, and save our planet from the ravages of climate change, we need to ultimately make clean, renewable energy the profitable kind of energy,' Mr Obama told lawmakers in his first-ever address to Congress.
'I ask this Congress to send me legislation that places a market-based cap on carbon pollution and drives the production of more renewable energy in America.' Senator Barbara Boxer, chairman of the Senate Environment Committee, heeded the president's plea.
'We will work in partnership with the president, and we will answer his call,' she said in a statement after the speech. -- AFP
