I'm sure that all of you have heard the growing concern and continual debates regarding carbon emissions and its effect on global warming.  Although this debate may continue for some time, many have already concluded that global warming is a reality and carbon emissions must be addressed.  At this time, it is almost certain that congress will pass some form of legislation to address carbon emissions within the next few years. 

The nation's two largest emitters of carbon emissions are the electric utility industry and the automobile industry.  Currently, approximately one-half of the nation's energy is generated by coal-fired plants.  All of these generating plants emit carbon as a byproduct of burning coal.  The energy industry has been researching new technologies that would provide carbon capture from coal-fired generating plants.  These new technologies are showing some promise for the future.

Once the technology is readily available to capture the carbon, the next question is "What do you do with the carbon"?  This is an area that we do not have any answers to at this point.  There's some research that indicates carbon sequestration, which is the process of injecting the carbon in rock formations hundreds of feet below the surface, may be the answer.  Although some research has been performed around this issue, there are many unanswered questions that remain and additional research will have to be performed.  As you can see, current technology does not provide an efficient or feasible way to capture the carbon and sequester it so that it does not enter the atmosphere.  Industry experts have stated that the technology needed for carbon capture and sequestration could still be 10 to 15 years away. 

In terms of the world's carbon emissions, the U.S. is no longer the greatest emitter of carbon emissions.  China's growth in industrialization over the past decade has created large demands for energy and China has just surpassed the U.S. in carbon emissions.  China is currently opposed to implementing any form of carbon reduction policies due to the potential harm to their economy.  India, who is also one of the world's largest emitters of carbon emissions, currently has no plan to implement carbon reduction policies.

Currently, our nation's leaders are considering a variety of proposed legislations to address the issue of carbon emissions, including cap-and-trade legislation and carbon tax legislation, to name a few.  Given that approximately one-half of the nation is energized by coal-fired generating plants and given that virtually all of us drive automobiles, the legislation that congress passes regarding carbon emissions will have a significant impact on all of us.  Some energy experts have indicated that some of the proposed legislations that are currently under consideration could raise the cost of generating electricity by as much as 50% to 100% in the next decade.  This is a startling statistic that should alarm all of us as energy consumers.  It is very critical that our nation's leaders consider this legislation very carefully and provide a solid plan to address carbon emissions without seriously harming the economy, especially given that the technology needed is currently not available.  In addition, any legislation that doesn't address some form of penalty for imports from countries that fail to pass carbon reduction policies would fail to achieve the overall goal of providing an economic incentive for reducing the world's carbon emissions.

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See you next month and as always, "We'll keep the lights on for you."