US chief executives rush to revive Obama's faltering climate legislation

A group of more than 80 of America's largest companies yesterday sought to breathe new life into president Obama's ailing climate change strategy, releasing an open letter to the president and members of Congress urging them to move quickly to pass comprehensive climate and energy legislation.

The letter, which was signed by 83 chief executives from some of the country's largest energy manufacturing, technology and consumer-facing companies, warned that the US is already "falling behind" in the global race to develop clean technologies and risks losing out to international rivals if robust carbon legislation is not passed.

The letter was organised by the We Can Lead green business coalition, which includes many high-profile firms such as Exelon, Virgin America, NRG Energy, eBay and PG&E.

It argued that many US businesses now recognise the challenge presented by climate change and "have already begun to respond and innovate".

But it warns that "today's uncertainty surrounding energy and climate regulation is hindering the large-scale actions that American businesses are poised to make."

It goes on to offer unequivocal support for the administration's efforts to pass a US climate change bill that would enable the launch of a national emissions trading scheme.

"We need strong policies and clear market signals that support the transition to a low-carbon economy and reward companies that innovate," it said. "It is time for the administration and Congress to embrace this policy as the promising economic opportunity that will empower American workers to compete and American entrepreneurship to lead the way."

Chief executives lined up to argue that climate change legislation was esse ntial to bolster US competitiveness, tackle unemployment and drive innovation.

"Power companies need and want to be part of America's clean energy transition," said David Crane, president and chief executive of NRG Energy Inc, which owns and operates more than 24,000MW of electricity generation capacity in the US. "But we need the certainty of clear rules and strong policies that will help us invest in that transition while also addressing climate change and keeping power affordable."

His comments were echoed by Virgin America chief executive David Cush, who argued that far from being a hindrance to businesses, climate change legislation would spur them on to develop innovative new technologies and services. "The same inventive solutions that will help the environment will also help move the airline industry forward," he predicted. "Big challenges have historically propelled more innovation and greater efficiencies. Strong climate and energy policies can be that challenge – one from which we will all emerge stronger."

The letter comes in a week that has left the White House's climate change strategy reeling from the dual blow inflicted by the Democrats' loss of its filibuster-proof majority in the Senate and moves by Republican senator Lisa Murkowski to strip the Environmental Protection Agency of its power to regulate carbon emissions.

Combined, the two developments appear to further erode the chances of US climate change legislation being passed this year.

However, the public support of some of those carbon-intensive firms most likely to be affected by the proposed cap-and-trade scheme will provide some hope that compromise legislation currently being prepared by Democrat senator John Kerry alongside Republican senator Lindsey Graham and independent Joe Lieberman can secure bipartisan backing.

Republican senators opposing the bill have repeatedly argued that it would damage the US economy, pointing to high-profile opposition from the US Chamber of Commerce and other business groups as evidence that corporate America is against the legislation. However, the reality is more complex and the growing support of energy companies, high-profile brands and emerging clean tech firms will bolster the Democrats' argument that cap-and-trade legislation can provide a boost to the economy.