As the science underpinning anthropogenic (man-made) global
warming steadily erodes in light of new data and in the midst of
scandal, the public policy rationale has also shifted. The
proponents of Kyoto-type legislative proposals now claim that it
is vital to invest in renewable energy sources and green
technology to keep pace with international competitors.
Fortunately, for U.S. taxpayers, the political class is not going
unchecked and unchallenged in its drive for greater government
control, regardless of how their schemes are packaged.
Over 70 climate scientists, economists and policy experts are
convening in Chicago this week for the fourth Annual Heartland
Institute International
Conference on Climate Change just as “cap and trade” has been
reintroduced in the U.S. Senate. Chris Horner, a senior fellow
with the Competitive Enterprise Institute (CEI) is among the many
participants.
“The issue is never the issue,” he has observed. “This is not
about the environment. It is about wealth transfers and lifestyle
restrictions.”
In the aftermath of the “climategate” scandal, it is worth
examining the motivations not only of public officials, but of
the business interests and green groups that continue to lobby
for anti-emissions regulations. A corporate spokesman who
responded to criticism said that imposing a price carbon would
create the right incentives for a more sensible approach to
energy policy.
On this point, there is vociferous disagreement.
Corporate officers who continue to advance “cap and trade”
schemes under the auspices of the United States Climate Action
Partnership (USCAP) are not
just wrongheaded, they are unpatriotic, the CEO of a private coal
company has argued.
While China and Russia snatch up oil and gas resources that have
economic and military value, U.S. policy makers are limiting
access to the most abundant and reliable sources of energy at the
behest of USCAP and other green groups, Robert Murray, the CEO of
Murray Energy, a mining company based in Ohio, has warned.
“I don’t consider them to be good Americans,” he said in an
interview. “They have a responsibility to the country not just
their companies and they have not told the truth. The electrical
utilities are all jockeying for some kind of benefit for
themselves but it has nothing to do with what’s good for
America.”
Murray is particularly critical of Exelon Corporation and General
Electric.
“These CEO’s have abrogated their responsibility to lead American
in the right direction,” he argued. “Meanwhile, Russia and China
are expanding their oil contracts.”
Paul Elsberg, a spokesman for Exelon disagrees.
“Exelon supports legislation that places a price on carbon,
because it will result in cleaner energy, greater security and
more jobs - all at the lowest cost,” he wrote in an email
statement. “Nothing else will ensure we do the cheapest things
first, including regulation of carbon emissions by the
Environmental Protection Agency (EPA).”
But whatever the merits may be of renewable technology over the
long term, there is no denying the strategic fallout to the U.S.
that is now in motion. Unlike fossil fuels, so-called clean
energy sources are expensive, intermittent and unavailable on a
commercial scale. Even if corporations have laudable motives
here, they should consider rebalancing their approach in light of
some
telling statistics that the Institute for Energy Research
(IER) has circulated.
While the U.S. stands still, China has spent nearly $200 billion
on oil deals that include 19 countries in the just the past few
years, according to the IER. There’s more.
“Between 2004 and 2008 China added 346 gigawatts of generating
capacity, of which 272 gigawatts were conventional thermal power
(mostly coal) and 66 gigawatts were hydroelectric power. This
compares to a total installed US hydroelectric capacity of 77
gigawatts,” IER reports.
Russia is also moving aggressively to secure its strategic
interests. With its traditional sources of natural gas steadily
eroding, the Kremlin has sought to make the most of substantial
gas fields in Yamal Peninsula located in northwest Siberia.
Russia has also claims ownership over a portion of the Arctic
continental shelf that is equal in size to France, Germany and
Italy combined.
Moscow is not standing still.
In fact, Russia has joined with Iran and Qatar to form what
the Heritage Foundation describes as a “gas OPEC” that meets
quarterly in an effort to exercise control over almost two-thirds
of the word’s natural gas reserves.
The debate over energy policy and its relationship with
environmental predilections must be viewed within a larger
context.
Over the past few decades, green activists have worked with great
effect to undermine America’s geopolitical standing, economic
well being and national security interests. Even after 9/11,
well-funded environmental groups persisted in recruiting teams of
lawyers and waves of demonstrators to block weapons testing, halt
naval exercises, short-circuit missile defense and undermine
border security.
Remarkably, no less than the U.S. Defense Department now sees fit
to resuscitate the cause of global warming alarmism as the idea
loses traction with the public.
Shrinking glaciers, extreme weather swings, rising
sea levels, temperature change, food security and water scarcity
are all identified as key factors that could fuel instability and
conflict around the world, the Pentagon claims in the 2010
Quadrennial Defense Review (QDR).
But the threat comes not so much from climate change per se as it
does from costly, interventionist climate change policy
proposals, Marlo Lewis, a senior fellow with (CEI) points out in
a
recent report.
“In the Afghan and Iraq wars, U.S. strategy plays to our
comparative advantage in mobile forces,” he wrote. “Today’s U.S.
Army is the most fuel-intensive in history and the Defense
Department is the nation’s largest consumer of fossil fuels.
Therefore it should interest DOD that cap-and-trade programs are
designed to make fossil fuels more costly.”
The QDR misses the mark by fixating on ill-conceived policy
prescriptions unattached from the actual risk of climate change,
Lewis argues. Contrary to what is now being peddled in the
Pentagon, new research actually shows that “cooperation rather
than conflict” characterizes the international response to shared
water resources, according to the CEI report.
“Human activity has nothing to do with global warming, it is a
natural phenomenon,” said Murray, the mining CEO. “But efforts
are still being made to destroy our global competitiveness and
harm our economy. USCAP has done a tremendous disservice to
America and to the American people.”
James Taylor, a senior fellow with Heartland who is overseeing
the conference, did say that a concerted effort was made to
include researchers who favored the theory of man-made global
warming. Unfortunately, he did not receive a substantial
response.
USCAP members who genuinely believe their approach will best
serve the long-term geopolitical interests of the U.S. should
consider some form out outreach to the experts gathered in
Chicago this week who relish the on-going debate over energy
policy.
martin j smith| 5.18.10 @ 8:02AM
This is cronycapitalism at its most disgusting. It reminds me to a degree of big business doing business with the Nazis or even more recently any business doing business with Iran. What is good for ( big ) business is not necessarily good for America.
miscparty | 5.18.10 @ 2:21PM
Teapartybell.com features this as one of the top ten articles under Cap & Trade category.
Gator| 5.18.10 @ 4:27PM
Email Mr Elsberg and let him know what you think, I did. paul.elsberg@exeloncorp.com