WASHINGTON, December 12 /PRNewswire/ --
Platts -- A top Bush administration official warned Tuesday that the incoming Democratic-controlled Congress would raise energy prices if it makes good on its promise to pass legislation curbing industrial greenhouse gas emissions that are blamed for global warming.
Harlan Watson, a State Department official who serves as the administration's chief international climate-change negotiator, made the comments at Platts Energy Podium, a Washington newsmaker event.
A climate bill with mandatory emissions caps would spur "fairly large increases in electricity costs," Watson said. It would do so by discouraging the use of coal and "encouraging fuel-switching" to more expensive natural gas, he added.
Watson rebuffed an argument made frequently by Democrats and environmental groups that Congress could cap greenhouse gas emissions just as it took steps in the 1990s to cap sulfur dioxide (SO2) emissions that were blamed for "acid rain."
Watson said there are "very important differences" between the two scenarios. In the case of the acid rain program, the technology that was needed to curb utility SO2 emissions was "essentially on the shelf, ready to go," he said. Moreover, the United States had a large supply of low-sulfur coal that it could use and transport around the country easily thanks to a well-developed railroad infrastructure, he added.
"We have no low-carbon source of coal," Watson said, adding that the availability of cleaner-burning gas is "limited."
Watson also offered a somewhat bleak assessment of the United Nations global-warming conference that he attended in Nairobi, Kenya, last month. Watson said he "got into loggerheads" with negotiators from developing countries on how to proceed on the issue of technology transfer, which is one of the administration's chief policies for addressing global climate change.
Watson also emphasized the difficulties he had in trying to convince China and other developing countries to take steps to curb their greenhouse gas emissions. "They are not about to put their economic growth in harm's way" to address global warming, he said.
"You just can't talk down to them" about the need to curb emissions, Watson said. "They're going to have to be convinced" that they can do it in a way that does not slow their economic growth, he added.
To that end, Watson touted 98 clean-development projects that the administration unveiled last month as part of its Asia-Pacific Partnership, a global-warming initiative that seeks to curb greenhouse gas emissions in China, India and four other Asian countries.
Thirteen of the projects seek to improve the efficiency of coal-fired power plants in China, India and other developing countries. More than 100 engineers from those countries came to Columbus, Ohio, last month to learn from U.S. experts how to improve the efficiency of their plants, Watson noted.
"Hopefully, they're going to carry that [information] back and implement it in their own countries," Watson said.
Hosted by Platts, the world's leading energy information provider and a division of The McGraw-Hill Companies, Platts Energy Podium provides an ongoing forum for prominent newsmakers and the press to address important energy and environmental issues. Credentialed media may receive complementary registration for Energy Podium events by contacting Nancy Covey at +1-202-942-8719, Nancy_Covey@platts.com. A recording of the Watson session is available via podcast at http://platts.com/energypodium/index.xml....
About Platts: Platts, a division of The McGraw-Hill Companies (NYSE: MHP), is a leading global provider of energy information. With nearly a century of business experience, Platts serves thousands of customers across more than 150 countries. From 16 offices worldwide, Platts serves the oil, natural gas, electricity, nuclear power, coal, petrochemical and metals markets. Platts' real time news, pricing, analytical services, and conferences help markets operate with transparency and efficiency. Traders, risk managers, analysts, and industry leaders depend upon Platts to help them make better, faster, and more profitable decisions. Additional information is available at http://www.platts.com.
About The McGraw-Hill Companies: Founded in 1888, The McGraw-Hill Companies (NYSE: MHP) is a leading global information services provider meeting worldwide needs in the financial services, education and business information markets through leading brands including Standard & Poor's, McGraw-Hill Education, BusinessWeek and J.D. Power and Associates. The Corporation has more than 280 offices in 40 countries. Sales in 2005 were US$6.0 billion. Additional information is available at www.mcgraw-hill.com.
Web site: http://www.platts.com
Kathleen Tanzy, Platts-US, +1-212-904-2860, kathleen_tanzy@platts.com; Shiona Ramage, Platts-UK, +44-0-20-7176-6153, shiona_ramage@platts.com; Casey Yew, Platts-Asia, +65-653-06552
