ManuFACTS: Creating a Low-Carbon Energy Economy

The Role of Manufacturers in Changing the Climate

• Manufacturers already face high energy, labor and health care costs that impede their ability to compete in the global market. The proposals limiting carbon emissions currently being debated by Congress would push energy costs to some of the highest in the world. • The Senate soon may consider a bill that would place a cap on carbon emissions from the utility sector with a provision to allow manufacturers to opt into the program if they choose. While the utility-only proposals are still in draft form, manufacturers remain concerned that these proposals could increase energy costs, causing jobs to move offshore. As the economy rebounds from the worst recession in a generation, Congress needs to implement policies that encourage the creation of more high-wage manufacturing jobs in the United States. • In 2009, the House of Representatives passed the American Clean Energy and Security Act by a vote of 219-212. The Waxman-Markey bill establishes a cap-and-trade program requiring greenhouse gas emissions reductions of 17 percent by 2020 and 83 percent by 2050 over 2005 levels, and it covers facilities and industries with “carbon allowances” based on past emissions. Companies that emit less carbon dioxide than permitted by their allowances can trade (sell) their excesses to those that do not. The bill also includes a renewable electricity standard and energy efficiency programs. • While manufacturers in the United States are dedicated to greater environmental sustainability, the NAM opposed the Waxman-Markey cap-andtrade bill because of its devastating impact on the economy. GDP losses were estimated to range from $2.2 trillion to $3.1 trillion, and approximately 2 million jobs would be lost under the cap-and-trade program. It is imperative that climate change legislation does not hinder economic growth.

How Congress Can Help
• Adopt legislation that would expand innovative, domestic energy production and would increase investment in nuclear energy and clean coal and other low-carbon energy technologies. • Oppose legislation that would result in fewer jobs and higher energy prices.

1331 Pennsylvania Ave NW, Suite 600, Washington, DC 20004


202• 637• 3000


202• 637• 3182

More Information
The NAM supports the development and deployment of competitive clean energy technologies and robust energy efficiency improvements; however, our members do not support mandates on the use of specific, economically uncompetitive technologies. The NAM supports policies that recognize the robust voluntary actions of industry to reduce energy intensity and improve efficiency to promote emissions reductions throughout the economy. NAM members are committed to working with the U.S. Congress to establish federal climate change policies that reduce greenhouse gas emissions while maintaining a competitive playing field for U.S. companies in the global marketplace.

Bottom Line
Manufacturers believe America can and should work toward a reasonable solution on climate issues and use innovative ways to reduce greenhouse gas emissions, which will create jobs and spur economic growth. Congress must engage in a thorough, transparent, deliberative process for establishing federal climate change policies to reduce greenhouse gas emissions while maintaining a competitive, level playing field for U.S. companies in the global marketplace.

NAM Resources
For more information on the NAM’s Climate Change Policy, please visit

NAM Contact
Keith McCoy, Vice President, Energy and Resources Policy or (202) 637-3175

July 2010

Sign up to vote on this title
UsefulNot useful