KEY POINTS:
US businesses have spent tens of millions of dollars trying to kill a proposed law that would introduce European-style "cap-and-trade" rules on carbon emissions - even before the bill hit the floor of the Senate for discussion yesterday.
Lawmakers began a week-long debate of measures to tackle climate change amid predictions of dire consequences if carbon emissions were capped.
Television viewers have been treated to visions of a dystopian future where Americans are forced to cook their breakfast over candles, or where thousands of jobs have been lost because of what one opponent called "economic disarmament" by the US.
Despite publicly supporting emissions reductions, the coal industry and electricity firms that use coal-fired plants - which stand to be most affected by new restrictions - have been among those funding a lobbying effort to derail the proposals.
And they received the public backing of the Bush Administration, which claimed cap-and-trade could reduce US GDP by as much as 7 per cent by 2050 and send petrol prices soaring.
"As you can imagine, our opposition to this will be quite strong and we'll be making these points throughout the week," said Keith Hennessey, director of the President's National Economic Council, at a White House forum. George Bush said he would veto the bill.
The legislation the Senate will debate is therefore not expected to become law this year, but opponents fear it could become the basis of a political consensus, which would be easier to enact under a new president next year.
The law could cut total US global warming emissions by 66 per cent by 2050, according to a summary of the measure.
"We're committed to supporting legislation to enact a mandatory federal programme to reduce greenhouse gas emissions," says America's Power, the lobby group funded by the coal industry.
"However, we can't jump on the first train that comes by."
Some coal industry executives have been involved in discussions with environmental groups and lawmakers aimed at achieving a consensus, but how a cap-and-trade scheme might work has left them far apart.
- INDEPENDENT
