2. Climate Change. The Earth’s climate is changing and there is concern about the potentially adverse effects of these changes on life on the planet. What is your position on the following measures that have been proposed to address global climate change—a cap-and-trade system, a carbon tax, increased fuel-economy standards, or research? Are there other policies you would support?

Obama

McCain

There can no longer be any doubt that human activities are influencing the global climate and we must react quickly and effectively. First, the U.S. must get off the sidelines and take long-overdue action here at home to reduce our own greenhouse gas emissions. We must also take a leadership role in designing technologies that allow us to enjoy a growing, prosperous economy while reducing greenhouse gas emissions by 80 percent below 1990 levels by 2050. With the right incentives, I'm convinced that American ingenuity can do this, and in the process make American businesses more productive, create jobs, and make America’s buildings and vehicles safer and more attractive. This is a global problem. U.S. leadership is essential but solutions will require contributions from all parts of the world—particularly the rest of the world’s major emitters: China, Europe, and India.

Specifically, I will implement a market-based cap-and-trade system to reduce carbon emissions by the amount scientists say is necessary: 80 percent below 1990 levels by 2050. I will start reducing emissions immediately by establishing strong annual reduction targets with an intermediate goal of reducing emissions to 1990 levels by 2020. A cap- and-trade program draws on the power of the marketplace to reduce emissions in a cost- effective and flexible way. I will require all pollution credits to be auctioned.

I will restore U.S. leadership in strategies for combating climate change and work closely with the international community. We will re-engage with the U.N. Framework Convention on Climate Change, the main international forum dedicated to addressing the climate change problem. In addition I will create a Global Energy Forum—based on the G8+5, which includes all G-8 members plus Brazil, China, India, Mexico and South Africa—comprising the largest energy consuming nations from both the developed and developing world. This forum would focus exclusively on global energy and environmental issues. I will also create a Technology Transfer Program dedicated to exporting climate-friendly technologies, including green buildings, clean coal and advanced automobiles, to developing countries to help them combat climate change.

We know that greenhouse gas emissions, by retaining heat within the atmosphere, threaten disastrous changes in the climate. The same fossil-fuels that power our economic engine also produced greenhouse gases that retain heat and thus threaten to alter the global climate. No challenge of energy is to be taken lightly, and least of all, the need to avoid the consequences of global warming. The facts of global warming demand our urgent attention, especially in Washington. Good stewardship, prudence, and simple commonsense demand that we act to meet the challenge, and act quickly.

To dramatically reduce carbon emissions, I will institute a new cap-and-trade system that over time will change the dynamic of our energy economy. By the year 2012, we will seek a return to 2005 levels of emissions, by 2020, a return to 1990 levels, and so on until we have achieved at least a reduction of sixty percent below 1990 levels by the year 2050. In doing this, we will transition into a low carbon energy future while promoting the technological innovations that keep us on a course of economic growth. The purpose of this approach is to give American businesses new incentives and rewards to seek cheaper emission reductions, instead of just new taxes to pay and new regulations to follow. This approach gives people time to adapt, instead of causing a sudden jolt to electricity bills and potential shutdowns of tradition coal-fired plants.

I have long supported CAFE standards - the mileage requirements that automobile manufacturers' cars must meet. Some carmakers ignore these standards, pay a small financial penalty, and add it to the price of their cars. But I believe that the penalties for not following these standards must be effective enough to compel all carmakers to promote the development of fuel-efficient vehicles. I will strengthen the penalties for violating CAFE standards, and make certain they are effectively enforced.

To bolster research efforts, government must do more by opening new paths of invention and ingenuity. A McCain administration would establish a permanent research and development tax credit equal to ten percent of wages spent on R&D, to open the door to a new generation of environmental entrepreneurs. I am also committed to investing two billion dollars every year for the next 15 years on clean coal technologies, to unlock the potential of America's oldest and most abundant resource. And we will issue a Clean Car Challenge to automakers, in the form of a tax credit to the American people, for every automaker who can sell a zero-emission vehicle. We will commit up to a 5,000 dollar tax credit to each and every customer who buys that car. In the quest for alternatives to oil, our government has thrown around enough money subsidizing special interests and excusing failure. From now on, we will encourage heroic efforts in engineering, and we will reward the greatest success.

I further propose we inspire the ingenuity and resolve of the American people by offering a $300 million prize for the development of a battery package that has the size, capacity, cost and power to leapfrog the commercially available plug-in hybrids or electric cars. This is one dollar for every man, woman and child in the U.S. -- a small price to pay for helping to break the back of our oil dependency – and curb the dangerous effects of global climate change.

I will continue to support the US Global Change Research Program and ensure that the program’s activities support the Nation’s needs for climate related information to help it prepare for the future.