Transcript

TONY EASTLEY: Iraq isn't the only pressure point on the US President. Some of America's best known companies are putting pressure on him to take the lead and impose limits on polluting gases.

General Electric, Alcoa and Caterpillar have formed an alliance calling for a national cap on the carbon dioxide released by industry. But President Bush who's been polishing his State of the Union address is unlikely to budge from his current position.

Brendan Trembath reports.

BRENDAN TREMBATH: When President Bush makes his State of the Union speech big business would like to hear him acknowledge the threat of global warming and confront it with a national cap on carbon dioxide emissions.

General Electric, Alcoa and Caterpillar are among the firms calling on him to take the lead. The corporate coalition recommends carbon dioxide output be cut by as much as 30 per cent within 15 years.

But they should be prepared to be disappointed because the White House spokesman Tony Snow says President Bush's speech won't go that far.

TONY SNOW: I think it's important to let the President go ahead and have a say at the State of the Union. As we've said there are no, there's been some talk about, sort of, binding of economy why carbon caps in the speech, but they are not part of the President's proposal. I'm not going to go and ask what the President's proposal is.

But it's worth saying that presidents always believe when it comes to climate change that the best way to achieve reductions is through innovation, and to figure out ways to come up with energy sources that are going to meet our economies constant demand for energy. And at the same time do it a way that's going to be friendly for the environment.

BRENDAN TREMBATH: For some of America's biggest companies to publicly pressure the US government on climate change is a turning point in the climate change debate.

Rob Fowler is the Managing Director of Abatement Solutions Asia Pacific.

ROB FOWLER: I think most people see that the policy on climate change needs to change, a bit of a pun there, in the US, in Australia in particularly, it's a matter of when rather than if in most company executives' minds. And they'd rather see that happen sooner rather than later.

BRENDAN TREMBATH: At this point it appears that President Bush does not want to include a carbon dioxide cap in his State of the Union address. What do you read into that reluctance to do so at this stage?

ROB FOWLER: Well I think to be honest, the sort of trading market mechanisms that we are talking about here are extremely complex. And for people to say, yes, straight away we'll do it, without understanding how it could work and what sort of implications it might have on a very specific basis. Perhaps there needs to be a bit more work on what might need, might be the right way to go.

I think in Australia there's been a lot of work done, a lot of great work done by the National Emissions Trading Taskforce. I think in the US there's been an enormous amount of work done in the north-eastern states and also on the west coast. So, perhaps it is time to say yes, we should do it, but I think it's dangerous to say we'll do carbon-trading straight out of the box. I think there needs to be a lot more specifics put down there for it to be a reasonable proposition.

BRENDAN TREMBATH: Is it a situation that government needs to lead first, or does industry need to get in first. Who really needs to get this started?

ROB FOWLER: Well, there is a real quandary here, because for industry to put the resources, and I suppose the effort required for something substantial to happen, they need some direction. Company executives are hesitant to do things, unless there's some real need to, or some obvious opportunity to make some money out of it.

TONY EASTLEY: Rob Fowler from Abatement Solutions Asia Pacific speaking there with our reporter Brendan Trembath.