New York, USA (GLOBE-Net) – A group of ten major corporations, representing a variety of industrial sectors, have formed a coalition with four environmental groups to urge the United States government to establish a national cap on greenhouse gas emissions.

The United States Climate Action Partnership (USCAP) is asking for a 10 to 30 percent cut in emissions over the next fifteen years, using a cap-and-trade system. According to the companies involved, the threat of climate change is now great enough that action must be taken, and a national program is essential to avoid a patchwork of state-level regulations.

USCAP member firms are: Alcoa, BP, Caterpillar, Duke Energy, DuPont, FPL Group, General Electric, Lehman Brothers, PG&E, and PNM Resources, all of which produce significant greenhouse gas emissions and would be directly affected by the legislation. The environmental groups are the Natural Resources Defense Counsel, Environmental Defense, the Pew Center on Global Climate Change, and the World Resources Institute.

A cap and trade program was the climate change approach preferred by most of the corporate executives, some of whom have advocated a carbon tax in the past. Overall, a cap and trade system is appealing because it allows for specific emissions targets to be met, and because it allows companies to efficiently pursue new technologies and emissions trading.

Legislative goals put forth by the group include mandatory policies to cut greenhouse gas emissions from major emitting sources, to be phased in over time. “Flexible approaches” are advocated that would set a price for carbon emissions for each sector. The group also wants incentives to encourage other countries to act, including growing emitters such as China and India.

The Partnership’s targets for emissions are:

• 100 to 105 percent of current levels within 5 years

  
  

• 90 to 100 percent of current levels within 10 years

  
  

• 70 to 90 percent of current levels within 15 years

  
  

• 20 to 40 percent of current levels by 2050 

Overall, the companies hope to stabilize global atmospheric greenhouse gas concentrations over the long term at between 450 and 550 parts per million, a level which has been suggested will avoid the worst impacts of large scale climate change.

Changing mood

While some have called for larger emissions cuts, the USCAP proposal is significant for two reasons: first, it represents a direct call for climate legislation by large companies who produce significant emissions and who would have balked at a similar plan even five years ago; and secondly it symbolizes growing consensus on climate change through cooperation between environmental groups and corporate interests.

The initiative is clearly timed to coincide with President George Bush’s State of the Union address, which took place Tuesday. The President mentioned energy security and climate change, but stopped short of discussion any sort of emissions limit or cap and trade system, instead stressing technology as the solution to energy and environmental issues.

See: US President now talking about climate change

Increasingly, large corporations, even those with significant emissions who are likely to be impacted by climate legislation, are calling for action on greenhouse gases.

As was evidenced at GLOBE 2006 nearly one year ago, the business community is seriously concerned about climate change, and is ready to take action once the government has established the rules of the game.

“Climate change is something we consider to be one of the most significant and emerging insurance risks that we face today,” said Jacques Dubois, chairman and chief executive of Swiss Re America Holding Corp., during a plenary session at the conference.

Firms are looking for long term stability and a clearly defined plan, to avoid the risks of climate change and also provide opportunities for new technologies. An increasing number of firms are seeing climate change as a business opportunity as well as a risk, showed the results of the 4th Carbon Disclosure Project last year.

See: Is Canadian business ready for climate change?

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