Earth Equity News

North Dakota Dem Senator Opposes Cap-and-Trade. Commentary by Sen. Byron Dorgan, Bismarck Tribune, July 22, 2009. "I'm in favor of taking action to reduce CO2 emissions and to protect our environment. But I don't support the 'cap-and-trade' plan now being debated in Congress... I support capping carbon emissions. But it has to be done the right way, with targets and timelines that allow us to accomplish our goals without driving the cost of energy for homeowners and businesses out of sight. The cap-and-trade plan does not meet that test for me... I know the Wall Street crowd can't wait to sink their teeth into a new trillion-dollar trading market in which hedge funds and investment banks would trade and speculate on carbon credits and securities. In no time they'll create derivatives, swaps and more in that new market. In fact, most of the investment banks have already created carbon trading departments. They are ready to go. I'm not. For those who like the wild price swings in the oil futures market, the unseemly speculation in mortgage-backed securities, or the exotic and risky financial products like credit default swaps that pushed our economy into the ditch, this cap-and-trade plan will be the answer to their prayers. Just last year, speculators overwhelmed the oil futures market, every day trading 20 to 25 times more oil than was being produced. That speculation drove the price of oil from $60 to $147 a barrel and gasoline to over $4 a gallon. The same speculators forced the price back down and made money in both directions. The American public paid the price for it. Don't get me wrong. I like free markets. But given recent history, I have little confidence that large financial markets are free or fair enough to trust them with a new, large cap-and-trade carbon securities market. I'm willing to cap carbon to address the threat to our environment. But it has to be done right. I will support a plan that establishes workable caps, invests in technology to decarbonize fossil fuels and sends the majority of the revenue raised to consumers to offset increases in the price of electricity resulting from the caps."