Bush plan seeks to cut US power plant emissions

WASHINGTON - US President George W. Bush has proposed cutting US power plant emissions of sulphur dioxide, nitrogen oxides and mercury in a bid to reduce acid rain, smog and general pollution.

The Republican President would cut emissions of three of the worst air pollutants - but not a fourth, carbon dioxide - by setting emission target limits, assigning permits for each tonne of pollution, and allowing firms to trade them in what one Bush Administration official called a "cap and trade system".

Such a system encourages businesses to begin cutting their emissions well before the target dates are imposed and allowing them to use the resulting reductions themselves in later years or to trade them to other businesses, the official said.

The reductions form part of Mr Bush's "Clear Skies Initiative" which the President unveiled yesterday, along with a voluntary system to reduce greenhouse gas emissions.

"Under traditional command and control regulations, everybody haggles over what the limits are.

"You have to get individualised permits. There is a compliance date that's out in time and nobody has an incentive to improve until the compliance date kicks in," a senior Bush Administration official said.

"Cap and trade tells the person who wants to invest now that they can get a financial incentive to reduce today ... that creates a credit that they can either use in the future or they can sell to somebody else.

"Unlike the current Clean Air Act where you don't get compliance until the date gets ... imposed, this one's going to bring real numbers down."

The European Union tentatively welcomed President Bush's new plan but said the Kyoto treaty he has rejected was still the best response to global warming.

Environmentalists lashed out at Mr Bush's voluntary plan, saying it would do nothing to curb US greenhouse gases.

Greenpeace said it appeared the policies would still allow US emissions to rise 29 per cent above 1990 levels by the end of the decade.

The US, which emits around one-quarter of the world's man-made greenhouse gases, pulled out of the 1997 United Nations anti-pollution treaty signed by Mr Bush's predecessor, Bill Clinton, saying it would harm the economy.

Thomas Legge, a climate specialist at the Brussels-based Centre for European Policy Studies, said the Bush strategy might have a knock-on effect to improve things in the future.

"You can say with some certainty that greenhouse gas intensity targets will not lead to absolute reductions, unless the economy shrinks.

"It may help by giving businesses some signals to make green investments," he said.

Chris Hewett, of Britain's Institute for Public Policy Research, said: "In climate change terms [setting efficiency targets] is nonsense, it won't help at all. The science is absolutely clear that we have to reduce emissions.

"Britain has proved that you can cut emissions and still have a very healthy economy.

"There is no inextricable link between carbon dioxide emissions and economic growth."

Green groups said they were suspicious of the timing of Mr Bush's announcement, days before he is scheduled to meet Japanese Prime Minister Junichiro Koizumi in Japan tomorrow.

Japan has so far remained committed to the pact agreed in its ancient capital of Kyoto, but has made no secret of the fact that it will struggle to meet its target.

Japan's continued support is vital to make up the numbers required to bring Kyoto into legal force, and environmentalists fear Washington may try to persuade it to a different strategy.

Greenpeace's Steve Sawyer said: "It looks like Japan is moving in the right direction at the moment, but a visit by Bush could be very persuasive."

- REUTERS

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