Senators unveil US climate bill to business applause

The long-awaited US climate bill was formally unveiled yesterday, firing the starting pistol on the race to pass comprehensive legislation ahead of this November's mid term elections.

The bill was launched by Democrat Senator John Kerry and Independent Senator Joe Lieberman, alongside a host of high profile business leaders from carbon intensive industries who have pledged to support the controversial legislation.

The bill's anticipated Republican co-sponsor, Lindsey Graham, was conspicuous by his absence after he withdrew support for the bill in protest at Democrat attempts to also pass immigration reforms this year.

Kerry said he was confident the bill could still secure the bipartisan support it requires to secure the 60 votes needed to pass through the Senate. He added that he was optimistic the bill could reach the Senate floor by June or July, giving the Democrats a chance of passing the legislation before the mid term elections when they are expected to lose a number of seats in Congress.

His comments were echoed by Senator Lieberman, who told reporters after the ceremony that he still thought Senator Graham could support the bill after working on it for the past six months. "Speaking for myself, I believe he'll vote for this bill," he said. "If we get to 59 (votes), he'll be 60 without hesitation, that's my view."

However, Senator Graham showed no sign of softening his stance yesterday, releasing a statement reiterating his view that the legislation should be delayed until the oil spill in the gulf has been addressed. "The problems created by the historic oil spill in the Gulf, along with the uncertainty of immigration politics, have made it extremely difficult for transformational legislation in the area of energy and climate to garner bipartisan support at this time," he said.

The chances of the bill passing look set to rest on the level of support that can be secured from both the White House and the business community.

President Obama issued a statement yesterday welcoming the launch of the bill and underlining his view that the legislation should be passed this year. "The challenges we face - underscored by the immense tragedy in the Gulf of Mexico - are reason to redouble our efforts to reform our nation's energy policies," he said.

However, there is speculation on Capitol Hill that the White House is reluctant to offer the same level of political support that helped to pass healthcare reforms earlier this year, particularly with the mid term elections looming and Republicans already positioning the bill as an energy tax.