U.S. Climate Action Partnership Doubles, More CEOs Call for Cap on Carbon

FOR IMMEDIATE RELEASE

Contact:

Fred Krupp, President, Environmental Defense, 202-387-3500

John DeCicco, Automotive Policy Specialist, 313-727-7429

Tony Kreindler, 202-572-3378 or 202-210-5791 (Cell)

(Washington– May 8, 2007) Environmental Defense today welcomed more than a dozen major companies from across the economy to the U.S. Climate Action Partnership and its call for Congress to put a firm cap on carbon emissions.

In a historic move that transforms the political landscape, General Motors has become the first automobile manufacturer to join the coalition, potentially breaking the long stalemate over rising emissions from the transportation sector.

Along with GM, market leaders including AIG, Alcan, Dow, Deere & Company, Johnson & Johnson, PepsiCo and Shell have joined with environmental groups to double the size of USCAP, creating an unprecedented alliance for the creation of a firm cap to reduce greenhouse gas emissions.

“With this lineup of companies and environmental groups endorsing it, a carbon cap is clearly the consensus solution to climate change,” said Fred Krupp, president of Environmental Defense.  “With cap and trade, we’ve found the center. Environmental groups and businesses can embrace it because it guarantees results for the climate while freeing companies to hunt for innovative, least-cost ways to lower emissions,” Krupp said.

Launched in January, USCAP is asking this Congress to adopt a mandatory, comprehensive greenhouse gas cap and trade system that reduces emissions by 60 to 80 percent from current levels by 2050.  “The addition of these new companies adds horsepower to the push for Congress to act quickly on a real solution to climate change.  There will likely be energy policy votes in the coming months, but until Congress adopts a comprehensive cap on carbon pollution – as USCAP recommends – it hasn’t led on global warming,” added Krupp.

Pioneered by Environmental Defense as a way to efficiently reduce emissions from power plants, cap and trade puts an enforceable limit on emissions and allows companies to buy and sell emissions credits to meet their obligations. The approach will provide an economic incentive for companies to reduce global warming pollution and unleash a wave of private-sector investment in low-carbon technologies.

Cars and light trucks are a significant contributor to U.S. carbon emissions, and GM’s support of the USCAP reduction targets and timelines is a strong signal to Congress to act quickly on a comprehensive climate bill. With an office in the Detroit area, Environmental Defense has worked with the automobile industry to find innovative approaches to solving the climate problem.

“We look forward to continuing to work with General Motors and other USCAP members to advance a national policy that engages all sectors, including transportation, in cost-effective solutions that harness technology and stimulate innovation,” said John DeCicco, Environmental Defense’s Michigan-based automotive policy specialist.

New member companies announced by USCAP today include Alcan, American International Group, Boston Scientific, ConocoPhillips, Deere & Company, Dow Chemical Co., General Motors Corp., Johnson & Johnson, Marsh Inc., PepsiCo, Shell, and Siemens. Also joining the group are the National Wildlife Federation and The Nature Conservancy.

More information on USCAP is available at http://www.environmentaldefense.org/article.cfm?contentID=5828