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Environmental Defense Fund and COMPETE Urge Congress to Support Market-Based Policies for Climate Change and Electricity

Posted on: Wednesday, 6 May 2009, 10:21 CDT

Joint statement highlights role of markets in promoting innovation, the most cost-effective means of reducing greenhouse gas emissions

WASHINGTON, May 6 /PRNewswire-USNewswire/ -- The Environmental Defense Fund (EDF) and the COMPETE Coalition today issued a joint statement and general principles in support of federal legislation enacting a uniform, economy-wide cap-and-trade program to control greenhouse gas (GHG) emissions.

The joint statement emphasizes that market-based policies will provide the most cost-efficient and effective means of achieving emissions reductions, and urges Congress to recognize the role of competitive markets for electricity in achieving climate-change policy goals.

"Markets have proven to be the most cost efficient and effective means to deliver goods and services to consumers and will bring the same benefits to help achieve the policy goals of federal climate legislation," the joint statement says. "Market forces will ensure that investments are made in the right places with cleaner, more efficient and innovative technologies. For that reason, we believe that well-structured competitive electricity markets offer the most benefit to consumers, our economy and the environment."

"A well-designed cap on carbon is the most environmentally effective and economically smart solution to climate change," said EDF President Fred Krupp. "A smart cap and competitive markets for electricity add up to a huge incentive for innovation in new technologies that reduce carbon pollution."

As Congress continues to debate climate legislation, the joint EDF/COMPETE Joint Statement and General Principles urge legislators to recognize that competition in energy markets will shift risk of imprudent investments in higher emitting resources away from ratepayers; create incentives for efficiency improvements that will reduce emissions; and maximize the incentives for innovation in new technologies that reduce emissions in conjunction with an economy-wide cap and trade program to limit GHG emissions.

"One of the keys to meeting our environmental goals is to ensure that investments are made in the right places with cleaner, more efficient and innovative technologies, and markets are the best way to achieve this," said COMPETE Co-Chair and former US Secretary of Energy Federico Pena. "Well-structured competitive electricity markets offer the most benefit to consumers, our economy and the environment and we welcome the Environmental Defense Fund's endorsement of this fact."

In the joint statement, the two organizations urge Congress to establish a program that includes a uniform, nationwide trading program; standards for verifiable emissions offsets; cost containment provisions; protections for low income customers; and market-based mechanisms to encourage efficiency, conservation and biddable demand response.

The complete Joint Statement and General Principles can be found at www.competecoalition.com.

ABOUT COMPETE:

The COMPETE coalition represents 331 electricity stakeholders, employing over 7 million American workers, including customers, suppliers, generators, transmission owners, trade associations, and economic development corporations - all of whom support well-structured competitive electricity markets for the benefit of consumers. For more information, please visit www.competecoalition.com

ABOUT ENVIRONMENTAL DEFENSE FUND:

The Environmental Defense Fund is a leading national nonprofit organization representing more than 500,000 members that links science, economics and law to create innovative, equitable and cost-effective solutions to society's most urgent environmental problems. Guided by science, Environmental Defense Fund evaluates environmental problems and works to create and advocate solutions that win lasting political, economic and social support because they are nonpartisan, cost-efficient and fair. For more information, please visit www.edf.org.

SOURCE The COMPETE Coalition

Source: PR Newswire

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