Message #29 From:
NewsBot Date: January 17, 2007 01:07:00 PM
AES News AES Outlines Support for National Instead of Regional CO2 Cap and Trade Legislation
ARLINGTON, Va.--(BUSINESS WIRE)--In a keynote address at the Inaugural US Point Carbon Conference in
Washington, DC today, Paul Hanrahan, President and CEO of the AES
Corporation (NYSE:AES), outlined the company’s
view that any US greenhouse gas emissions legislation adopted to address
climate change should be structured as a nation-wide US cap and trade
program rather than a series of state or regional programs.
“National cap and trade domestic regulation
will be more effective than a set of regional programs with different
rules and set-ups that are not interlinked or interoperable,”
Mr. Hanrahan said. He emphasized that US carbon policy should be
expansive, efficient, equitable and equivalent.
Expansive
In addition to a nation-wide policy, Mr. Hanrahan also said that a
national cap and trade program should apply to all economic sectors that
produce greenhouse gas so that each source contributing to the problem
of global warming bears part of the cost of the solution.
Efficient
When implementing these controls, Hanrahan said policymakers need to be
mindful of the financial impact on consumers and the industry, as well
as the reliability of the supply chain. He reiterated that “over
the long term, a national cap and trade program would provide for a more
orderly market which we believe will ultimately reduce the cost of
compliance.”
Equitable
Mr. Hanrahan also endorsed an allowance allocation system rather than an
auction mechanism, noting that this approach has worked effectively in
reducing SO2 and NOX
emissions in the US.
Equivalent
In order for any such program to work, Mr. Hanrahan indicated that the
US must adopt a rigorous CO2 offset
certification system that provides full credit for offsets regardless of
how or where in the world they are created.
AES has experience operating power generation and distribution
facilities in 26 countries and 14 states, many of which have greenhouse
gas regulations. The company also has experience in almost every form of
generation and fuel type, including wind power, hydro electric, natural
gas, coal, and biomass (agricultural and wood waste), as well as
experience in carbon offset investments, providing AES with a balanced
perspective on emissions regulations.
Mr. Hanrahan also discussed steps AES is taking to develop new programs
and technologies to address the greenhouse gas challenges facing the US
including an innovative, planned partnership between AES and GE Energy
Financial Services. The partnership would seek to create an annual
production volume of 10 million tonnes of greenhouse gas offsets by
2010, primarily through the reduction of emissions of methane –
a potent greenhouse gas with a warming potential 21 times greater than
carbon dioxide. In addition, the partnership would also pursue
development of offsets through energy efficiency projects and the
creation of renewable forms of electricity generation. The offsets from
these projects would be sold to commercial and industrial customers that
want to reduce the environmental impact of their operations or provide
climate-friendly products or services to their customers.
Last April, AES announced the formation of its alternative energy group,
making a $1 billion commitment to investments in wind power generation,
LNG and climate change sectors. In December, AES adjusted its guidance
on investment in this sector to potentially as much as $10 billion over
the next 5-10 years. It has already announced a target to produce up to
40 million tonnes of greenhouse gas emission offsets per year by 2012,
through development projects under the Clean Development Mechanism of
the Kyoto Protocol in Asia, Africa, Europe and Latin America.
Mr. Hanrahan said that regardless of people’s
views on climate change, “the fact is that
regulations are upon us internationally and in many US states. The
growing consensus is that national domestic regulation is a matter of
when, not if.”
He said that AES’s greenhouse gas reduction
initiatives and policy positions will not only help address the climate
change problem, but they also “make good
business sense.”
AES is one of the world's largest global power companies, with 2005
revenues of $11 billion. With operations in 26 countries on five
continents, AES's generation and distribution facilities have the
capacity to serve 100 million people worldwide. Our 14 regulated
utilities amassed 2005 annual sales of over 82,000 GWh and our 121
generation facilities have the capacity to generate approximately 44,000
megawatts. Our global workforce of 30,000 people is committed to
operational excellence and meeting the world's growing power needs. To
learn more about AES, please visit www.aes.com
or contact AES media relations at media@aes.com.
Safe Harbor Disclosure
This news release contains forward-looking statements within the meaning
of the Securities Act of 1933 and of the Securities Exchange Act of
1934. Such forward-looking statements include, but are not limited to,
those related to future earnings, growth and financial and operating
performance. Forward-looking statements are not intended to be a
guarantee of future results, but instead constitute AES's current
expectations based on reasonable assumptions. Forecasted financial
information is based on certain material assumptions. These assumptions
include, but are not limited to, continued normal levels of operating
performance and electricity demand at our distribution companies and
operational performance at our contract generation businesses consistent
with historical levels, as well as achievements of planned productivity
improvements and incremental growth investments at normalized investment
levels and rates of return consistent with prior experience. Actual
results could differ materially from those projected in our
forward-looking statements due to risks, uncertainties and other
factors. Important factors that could affect actual results are
discussed in AES's filings with the Securities and Exchange Commission,
including, but not limited to, the risks discussed under Item 1A "Risk
Factors" in AES's 2005 Annual Report on Form 10-K. Investors and other
interested parties are encouraged to read AES's filings to learn more
about the risk factors associated with AES's business. AES undertakes no
obligation to update or revise any forward-looking statements, whether
as a result of new information, future events or otherwise.
