Lisa DeMarco Quoted in Report on Business Regarding the Effect of the American Clean Energy and Security Act
June 29th, 2009Alberta's oil sands producers and their U.S. refiners face sharply higher costs to reduce greenhouse gas emissions under legislation approved by the U.S. House of Representatives and championed by U.S. President Barack Obama. The American Clean Energy and Security Act, if passed by the U.S. Senate, could also result in new tariffs on Canadian exporters of energy-intensive goods from cement to chemicals if Washington deems Ottawa's climate-change regulations to be lacking.
The industry also takes some comfort from Mr. Obama, who warned against border-tariff measures in the bill.
However, the Waxman-Markey bill became even more protectionist after it was amended to ensure its passage; the amendments make it easier for Washington to impose tariffs.
Canadian concerns “have intensified,” said Elisabeth DeMarco, a Toronto-based lawyer with MacLeod Dixon LLP.
The House bill seeks to prevent “carbon leakage” – meaning the shift of emissions-heavy industries and jobs out of the U.S. to avoid the new regulatory burden.
“The amendments heighten the carbon leakage provisions, which are really trade-protection provisions dressed up as carbon leakage,” Ms. DeMarco said.
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