Energy Companies Team Up in Senate Climate Debate

Duke Energy, and other energy heavyweights, such as Shell Oil and General Electric, are banding together to present Congress with a unified front, saying a carbon market "will help them get financing for the next generation of energy production" projects, Reuters reported. Their goal is to get a climate bill passed before the mid-term elections in November in the face of significant opposition.

Wrote Reuters: "President Barack Obama says he still backs a climate bill but many have written off the chances of passing legislation with the most controversial provision: a market that aims to cut pollution by letting companies buy and trade permits to emit greenhouse gases. Nevertheless, some major U.S. companies are pushing for a bill that would include this cap-and-trade system, saying it would create a modern energy economy and thousands of jobs."

Already, Duke Energy CEO Jim Rogers and Shell President Marvin Odum have met with moderate lawmakers angling to push favorable legislation through the Senate. Added the newswire: "One idea is to allow cap-and-trade to be implemented on power utilities first, with regulations on oil refineries and other industries coming later."

Rogers noted that handling the legislation this way would "give investors confidence to finance new power plants," according to Reuters, which quoted him as saying: "We have to retire or replace every plant by 2050. The sooner we get about the business of doing that, the better." He said wind and solar power markets would grow faster under a cap-and-trade system, which would help the United States compete with emerging powers like China.