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Press Release

For Immediate Release
Contact: Sean Bonyun
202-225-3761
March 25, 2009

Upton: Cap and Tax Scheme will Cost Jobs, Harm the Economy

WASHINGTON, DC – Congressman Fred Upton (R-MI), ranking Republican of the House Energy and Commerce Subcommittee on Energy and Environment, made the following statement at this morning's subcommittee hearing on "Preparing for Climate Change: Adaptation Policies and Programs."

Upton's full opening statement is provided:

Our hearing today is on climate change "Adaptation Policies." I view "cap and tax" as a policy that requires adaptation. How will Americans adapt to losing their jobs? How do we adapt to increased energy costs? How do we adapt to a legislatively imposed economic recession? How does the nation adapt to losing its superpower status?

Cap and tax isn't our only option. We can pursue policies that will both help the environment AND the economy. By design, a cap and tax can only hurt the economy while providing a questionable environmental benefit. It is indeed a scheme - absent a global agreement that includes the heavy emitting developing countries, cap and tax will only send energy costs up while sending employment numbers down.

This year, the United States will reduce its greenhouse gas emissions, and we'll do it without cap and tax. Emissions are way down in Michigan this year. But emissions levels haven't even dropped to 1990 levels. Folks are asking for 80 percent below 1990. How do we like these reductions so far? Unemployment is up to 13 percent in Michigan. Fifteen percent is right around the corner, along with greater reductions in emissions.

But in this debate over climate change, we've lost sight of our true goals. We've lost sight of what our policies should achieve. The focus has become a cap and tax scheme as an end in itself – what about reducing global temperatures?

As one who believes climate change must be dealt with on a global scale, I've advocated "no regrets" policies that will achieve the same – if not better – results as arbitrary cap and tax schemes, at a fraction of the cost. In fact, there are policy options available that would have a net economic and societal benefit, while at the same time cutting emissions.

We've lost too many jobs already. We should not pursue options that will make matters worse. If we're going to pass climate change legislation it should adhere to the following five principles: 1) provide a tangible environmental benefit to the American people; 2) advance technology and provide the opportunity for export; 3) protect American jobs; 4) strengthen U.S. energy security; and 5) require global participation. These principles deal with the issues of cost vs. benefit – the cost of action as well as inaction. Cap and tax schemes do not meet these criteria.

Climate change is a global problem and it requires a global solution. Without joint international action, jobs and emissions will simply shift overseas, to countries that require few, if any, environmental protections, harming the global environment as well as the U.S. economy. I yield back.

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