Experts Debate Costs of Climate Change Legislation at Chamber

Climate change legislation that creates a carbon emissions cap-and-trade system will be costly to business, according to administration officials, economists, industry and association experts, and business leaders who spoke during an all-day May 20 event at the U.S. Chamber of Commerce.

Increased litigation, additional insurance, compliance with a patchwork of federal and state rules, the possibility of a trade war with trading partners, and onerous and unrealistic disclosure and reporting requirements are some of the threats to business posed by a cap-and-trade system similar to the one called for in the controversial Lieberman-Warner Climate Security Act, according to the panelists. The Lieberman-Warner bill is expected to come up for a vote in Congress later this summer.

“All the people sitting on Capitol Hill thinking Lieberman-Warner is the panacea that’s going to solve everything aren’t taking into account the economic impact of litigation,” said Richard O. Faulk, a partner at Gardere Wynne Sewell law firm in Houston. “That cost hasn’t been included in any model or analysis.”

The U.S. Chamber is leading a national debate on climate change policy, drawing on various stakeholders and experts. “We need to have an honest examination of the costs and benefits of proposals to address climate change, including what to do, who will pay, and how it will impact the average American citizen,” said Chamber Executive Vice President Bruce Josten.

Read the Chamber’s position on climate change.

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