In a recent letter Rep. John Olver (D-MA), Chairman of the Transportation, Housing and Urban Development appropriations Subcommittee, called on President Bush to endorse a mandatory, market-based "cap and trade approach" to reduce greenhouse gas (GHG) emissions. The letter was sent on February 1, with the support of 39 other House members, all of which are co-sponsors H.R. 620, the Climate Stewardship Act, introduced by Reps. Olver and Wayne Gilchrest (R-MD) on January 22. H.R. 620 would implement a market-based cap and trade approach to reducing GHG emissions by at least 75 % in the next half century.
The letter encourages the President to embrace a similar approach, noting that voluntary efforts have not been enough and that GHG emissions continue to rise at 1-2% per year. The letter also points to the fact that "CEOs from ten major companies with operations across the economy -- utilities, manufacturing, petroleum, chemicals and financial services -- banded together with leading environmental groups to call for a firm nationwide limit on carbon dioxide emissions." According to Olver, these companies realize that US businesses stand to gain from the cap and trade approach, both through regulatory certainty, which allows for efficient planning for future business investments, and through new market competition for energy and emissions-related technologies.