US business giants demand emissions cap

A coalition of some of the world's largest companies has thrown its weight behind president-elect Barack Obama's plans for an emissions cap-and-trade scheme, with the publication of a blueprint detailing how the US can cut emissions by 80 per cent by 2050.

The US Climate Action Partnership – which features more than 30 of the world's largest businesses and NGOs including BP, Dow Chemical, Ford, GE, General Motors, PepsiCo and Shell – today unveiled A Blueprint for Legislative Action, outlining how Obama should roll out a cap-and-trade scheme that it claims would both curb carbon emissions and protect US competitiveness.

Endorsing the new plan, Jeff Immelt, chairman and chief executive of engineering giant GE, said that it should help drive investment in clean technologies, despite recessionary pressures.

"In the past, the US has proved that we have the will, the capabilities and the courage to invest in innovation – even in difficult times," he said. " Today, cap-and-trade legislation is a crucial component in fuelling the bold clean energy investments necessary to catapult the US again to preeminence in global energy and environmental policy, strengthen the country's international competitiveness, and create millions of rewarding new American jobs."

Obama has said that he will introduce a nationwide cap-and-trade scheme that will cut emissions by 80 per cent by 2050.

However, few details on the precise structure of the scheme, which is likely to face staunch opposition from traditional business groups, have been released, and Democratic leader of the House of Representatives Nancy Pelosi said that the legislation may now be delayed until next year.

The new Blueprint document, which highlights the scale of support for cap and trade among many multinationals, endorses Obama's plans for 80 per cent cuts but also maps out how verifiable carbon offset schemes should be incorporated into the scheme and sets out proposals that would ensure money raised through the scheme should be redirected to fund climate change mitigation and adaptation projects.

In addition, the Blueprint calls for a "significant proportion" of carbon credits to be distributed free of charge to "disadvantaged" economic sectors that could see their international competitiveness curbed by the emissions cap, and outlines plans for an increase in the incentives available for firms investing in low-carbon technologies and infrastructure.