Climate Change

December 7, 2009
Keith McCoy, Vice President, Energy and Resources Policy
National Association of Manufacturers

During his visit at the United Nations Conference on Climate Change in Copenhagen late this week, President Obama will announce that the United States will commit to 17% greenhouse gas reduction goal by the year 2020. This commitment is very similar to legislation sponsored by Reps. Henry Waxman and Edward Markey, the American Clean Energy and Security Act, which Congress considered earlier this year.

Waxman-Markey was a sweeping energy and greenhouse gas reduction bill that would impose increased costs and regulation upon American manufacturers and consumers. The NAM strongly opposed the Waxman-Markey bill as it would impair the ability of manufacturers to remain competitive in the global marketplace. In addition, the NAM expressed concern that competitive damage would be especially severe if the United States acts unilaterally, and China, India and other manufacturing economies do not limit their own emissions.

The NAM and the American Council for Capital Formation (ACCF) conducted a study to assess the potential economic impact of the Waxman-Markey bill and found that:

· Cumulative loss in Gross Domestic Product (GDP) of up to $3.1 trillion (2012-2030);
· Employment losses up to 2.4 million jobs in 2030;
· Residential electricity price increases up to 50 percent by 2030;
· Gasoline price increases (per gallon) up to 26 percent by 2030.

While American manufacturers are committed to greenhouse gas reductions, such policies cannot inhibit our ability to remain competitive. Committing our nation to this aggressive greenhouse gas reduction goal will only further weaken our economy and cost jobs.

As the United States Senate must ratify this commitment made by the President, it is imperative that the manufacturing community contact their Senators now and urge them to oppose this aggressive action. To contact your Senators, please visit www.nam.org/p2.