U.S. Senate Tables Global Warming Legislation
By Jeff Berman, Group News Editor -- Logistics Management, 7/1/2008
WASHINGTON — A piece of legislation that called for significant reductions in U.S. greenhouse-gas emissions was shelved by the U.S. Senate last month by a 48-36 vote.
Although the bill was not likely to pass in an election year, it may be viewed as a positive when a new president takes office, because both Presidential Candidates Barack Obama and John McCain favor mandatory reductions in greenhouse gases, according to House Speaker Nancy Pelosi.
The legislation, S. 3036, the Lieberman-Warner Climate Security Act of 2008, was introduced by Senators Joseph Lieberman (In-Conn.), and John W. Warner (R-Virginia). Its main objective, if passed, would have been to mandate that the United States cut greenhouse gas emissions by nearly 70 percent below current levels between 2012 and 2050 and 18 percent below 2005 levels by 2020.
This legislation comes at a time when going “green” is front and center for shippers, carriers, and consumers. And a process proposed in the bill focused on capping and trading greenhouse gas emissions may eventually have a significant impact on the freight transportation sector, since “reducing greenhouse gas emissions requires changes in vehicles, in fuels, and in consumer behavior,” according to the legislation.
Even though the legislation did not receive the required votes, it may turn out to be a blessing in disguise because it falls far short of advocating achievable goals, according to Brittain Ladd, director of logistics and project management for a Dallas-based private equity firm and former manager of logistics and transportation strategy for Dell Inc.
“The worst thing that could happen to the green movement in the U.S. is that such a bill be passed,” said Ladd, “as it is simply too broad in its scope and too narrow in its focus on carbon reduction.”
One way to reduce the impact of transportation on the environment is simply by using less transportation, said Ladd. “The only way the U.S. will use less transportation in the years ahead is if the largest trucking companies, retailers, and manufacturers in the U.S. truly collaborate on shipping, sharing drivers and equipment, and keeping trucks operating 24/7,” he said. “Collaboration on such a scale would greatly accelerate innovative strategies and techniques to refine transportation in the U.S.”
Joe Madden, principle of Sustainable Transport Systems, a green transportation and logistics consulting firm in Santa Cruz, Calif., said that the most important thing is that carbon allowances be auctioned and that regulations allow for the innovation in various industrial sectors—including transportation—so that the most innovative stakeholders gain a competitive advantage by managing their greenhouse gas emissions in the most effective way possible.
“The entire climate space is in evolutionary chaos and, provided that Congress learns from the mistakes in the EU and elsewhere, there is a significant opportunity to create a solid platform by which a leaner, more efficient transportation industry will emerge,” said Madden.
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