Tony Kreindler, 202-572-3378 or 202-210-5791 (cell)
(Washington – March 13, 2008) An analysis released today by the National Association of Manufacturers and the American Council on Capital Formation dramatically overstates the potential cost of reducing global warming pollution under the Lieberman-Warner Climate Security Act and ignores the severe economic impact of inaction.
- No use of market tools to manage costs. This is directly counter to the provisions of the Climate Security Act, which provides for banking and borrowing of emissions allowances to keep costs down.
- Artificially limited use of offsets. The analysis caps offset use at 20 percent. This also is counter to the provisions of S. 2191, which allows 30 percent of reductions from offsets.
- Very limited carbon capture and storage (CCS). The modeling appears to assume that there will be few if any coal plants built with CCS, causing prices to go through the roof.
- Very limited use of renewable energy. In fact, the “low-cost” assumption about wind power (less than 5 gigawatts per year) is lower than the actual amount of wind power deployed in 2007 (5.244 gigawatts).
- Unreasonably high oil prices and no price response as a result of climate policy. MIT on the contrary predicts producer prices falling as a result of curtailed demand.