Rather than continue down the same cap-and-trade path that “has only increased division” within Congress over climate change legislation, Sen. Lisa Murkowski (R-AK) Wednesday called for the Senate to return to the drawing board to consider other options, such as a carbon tax that is favored by oil and natural gas producers.

“We need to dispense with the blind faith in cap-and-trade that has dominated the past year of debate — or at least question whether that loyalty is truly warranted,” said Murkowski, the ranking Republican on the Senate Energy and Natural Resources Committee, during a hearing exploring options other than the cap-and-trade approach for reducing greenhouse gas (GHG) emissions.

“Putting a specific and predictable price on carbon would provide cost certainty to consumers and businesses, minimize price fluctuations and perhaps facilitate greater international cooperation,” she said.

Murkowski said she was concerned that the debate on climate change legislation has become “overly narrow.” All options — including technological innovation and sector-specific approaches — should be on the table for reducing carbon emissions, she said.

“The main argument for cap-and-trade is that it would create a new market in which economically efficient and environmentally compliant decisions could be made. Despite this, the House and Senate bills display a clear lack of faith in the ability of a ‘carbon market’ to function on its own.

“If a given policy purports to reduce emissions, it should be allowed to do just that. Additional layers of bureaucratic regulation — which are duplicative, inefficient and counterproductive — should be taken off the table. And if a policy is not up to the task, either in theory or in practice, then we need to consider alternatives,” Murkowski said.

Climate change legislation cleared the Senate Environment and Public Works Committee in early November, while the House passed a climate change measure in late June (see Daily GPI, Nov. 6, June 29). The Senate bill sets a 20% mid-term target for reducing GHG emissions, while the House measure calls for a 17% targeted reduction (see Daily GPI, Oct. 1).

The Senate environment panel’s bill will be one of several in the Senate targeting climate change. Sens. John Kerry (D-MA) , Lindsey Graham (R-SC) and Joe Lieberman (I-CT) are working together to craft legislation that could clear the Senate (see Daily GPI, Nov. 5).

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