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Clinton: Create $100 Billion Global Fund for Global Warming

December 18th, 2009 by Adam Axvig

Secretary of State Hillary Clinton Spoke at the COP15 Conference on ThursdaySpeaking in Copenhagen yesterday, Secretary of State Hillary Clinton proposed the creation of a $100 billion global fund to fight global warming. There were no details on how much of the $100 billion per year would come from the United States, but the statement ups the ante on the negotiations and affirms the United States’ determination to reach an agreement.

In his speech to the conference today, President Obama repeated Secretary Clinton’s $100 billion proposal with conditions, saying;

First, all major economies must put forward decisive national actions that will reduce their emissions, and begin to turn the corner on climate change. I’m pleased that many of us have already done so. Almost all the major economies have put forward legitimate targets, significant targets, ambitious targets. And I’m confident that America will fulfill the commitments that we have made: cutting our emissions in the range of 17 percent by 2020, and by more than 80 percent by 2050 in line with final legislation.

Second, we must have a mechanism to review whether we are keeping our commitments, and exchange this information in a transparent manner. These measures need not be intrusive, or infringe upon sovereignty. They must, however, ensure that an accord is credible, and that we’re living up to our obligations. Without such accountability, any agreement would be empty words on a page.

I don’t know how you have an international agreement where we all are not sharing information and ensuring that we are meeting our commitments. That doesn’t make sense. It would be a hollow victory.

Number three, we must have financing that helps developing countries adapt, particularly the least developed and most vulnerable countries to climate change. America will be a part of fast-start funding that will ramp up to $10 billion by 2012. And yesterday, Secretary Hillary Clinton, my Secretary of State, made it clear that we will engage in a global effort to mobilize $100 billion in financing by 2020, if — and only if — it is part of a broader accord that I have just described.

Obama’s second condition has proved to be one of the the most controversial. Obama believes transparency is fundamental to any agreement. Chinese officials disagree. As the world’s leading producer of greenhouse gases, no nation exerts as much influence over the talks, or has as much at stake, as China. China is adamantly against the third party monitoring of its greenhouse gas emissions citing concerns over national sovereignty. As the conference winds down today, so closes the window to make a deal.

Read the full text of Chinese Premier Wen Jiabao’s address here.

Congress to Raise Debt Ceiling by $1.8 Trillion

December 11th, 2009 by Adam Axvig

House Appropriations Chair Dave ObeyCongressional Democrats are poised to vote on raising the national debt ceiling from $12 trillion to $13.8 trillion. The vote could come before the end of the year, an effort to minimize possible political blowback in the 2010 midterm elections. The story elicited a number of comments by lawmakers. In an interview with Politico, House Appropriations Chair David Obey said, “…the credit card has already been used. When you get the bill in the mail you need to pay it.”

Groups of conservative Democrats critical of runaway spending have emerged in both the House and Senate. One such member is North Dakota’s Sen. Kent Conrad, chair of the Senate Budget Committee. Conrad teamed up with New Hampshire Republican Sen. Judd Gregg to introduce legislation to create a budget task force (press release) to plot a more sustainable fiscal course.

The legislation has 31 co-sponsors including Minnesota’s own Sen. Amy Klobuchar.  In a press release yesterday, Klobuchar said:

“We have already seen what happens to our economy when Wall Street is fiscally irresponsible.  We cannot let our federal government do the same thing,”

“We need to change the way Washington works when it comes to our long-term fiscal outlook.  This is not about being a Democrat, a Republican or an Independent.  The Bipartisan Fiscal Task Force is about trying to get something done to stop unsustainable spending and restore our financial stability.” (Press Release, “Klobuchar Sponsors New Bipartisan Fiscal Task Force Legislation to Confront Nation’s Budget Crisis”)

The task force would have 18 members, ten Democrats and eight Republicans. The committee would also have bipartisan co-chairs.

Senator Gregg posted a fact sheet on the legislation here. For more information on the Bipartisan Task Force for Responsible Fiscal Action Act of 2009, click here.

The Value Added Tax

I posted on the Value Added Tax (VAT) back on October 9th when House Speaker Nancy Pelosi said in an interview that the controversial tax was on the table.

The Value Added Tax is in the news again this week because of an article in yesterday’s New York Times suggesting a VAT is gaining support on and off Capitol Hill. According to the article, the VAT is gaining support as the only feasible way to raise enough revenue to keep up with runaway federal spending.

Pelosi isn’t the only influential lawmaker eyeing a value added tax. Senate Budget Committee Chair Kent Conrad also believes a value added tax should be on the table. In an interview with the Washington Post in May, Conrad said,

“There is a growing awareness of the need for fundamental tax reform…I think a VAT and a high-end income tax have got to be on the table.” (Washington Post, “Once Considered Unthinkable, U.S. Sales Tax Gets Fresh Look,” May 27, 2009)

Whether through spending cuts, a new task force or a national value added tax, it is becoming clear that the cure for paying off the federal credit card isn’t as simple as raising the credit limit.

China – “Developed Nations Must Cut 40% by 2020″

December 9th, 2009 by Adam Axvig

shanghaiThis afternoon, China’s top climate diplomat, Xie Zhenhua, asked the US to commit to cutting at least 40% of its carbon output by 2020. The tough talk came in an interview with Zhenhua at Copenhagen. So far, much of the focus in Copenhagen has been on China and the United States, the two key players in the negotiations. Many speculate that if the two powers cannot come to an agreement, the Copenhagen Conference will fail to produce any substantive accord.

There is also disagreement between the two on how much money should be given to developing nations. China believes that developed nations should give upwards of 1.5% of their GDP to developing nations to help close the economic gap, a number much higher than the $10 billion per year pledged by first world nations.

Time will tell whether or not China and the US can come to an agreement, there are still nine days left in Copenhagen including a much anticipated visit by President Barack Obama.

Copenhagen Day One – COP15 President “Let’s Open The Door To The Low Carbon Age”

December 7th, 2009 by Adam Axvig

Copenhagen Day One – COP 15 President Connie Hedegaard opened up the Copenhagen conference today urging what has emerged as the common theme among the media and heads of state attending; action must happen now.

The sentiment was echoed by the worlds media; according to the BBC an incredible 56 newspapers in 45 countries carried editorials “urging politicians to forget their differences and work together to forge an agreement.” The, “point of no return” theme permeates the conference. The sense of urgency combined with the unprecedented public attention creates a perfect storm of action; just what the organizers hoped.

We’ll be covering the event throughout the day, in the meantime you can watch it live here or below if your browser supports iframes.

Minnesota Budget Deficit At $1.2 billion

December 4th, 2009 by Adam Axvig

Budget officials released their projections on Tuesday, predicting a $1.2 billion shortfall over the next biennium. Both parties issued releases on the shortfall (GOP DFL) and state leaders made statements on the deficit, from MPR:

Job creation was the focus with both sides pledging bipartisan efforts to combat the deficit.

Northern Lights Express Price Tag Revised to Just Under $1 Billion

December 1st, 2009 by Adam Axvig

nlxlogoState officials have revised the estimated cost of the Northern Lights Express to $990 million. The number could become reality if the Northern Lights Express is built using the “worst case scenario.” Federal money could pay up to 80% of the project, but supporters and the state need to find common ground on what the estimated cost is to submit an application for federal funding.

8th district Congressman Jim Oberstar, chair of the U.S.  House Transportation Committee disagrees. In an interview with Minnesota Public Radio, Oberstar said “Those are factors yet to be determined…Resolution of those open-end issues will determine its overall cost. I don’t see the need for a billion-dollar investment.”

The line would spur an estimated $2 billion in investment, according to the Northern Lights Express Passenger Rail Project (NLX). However, headaches started when the Minnesota Department of Transportation (MNDOT) and NLX found major discrepancies in their visions of the line. Some of the key sticking points are:

  • The number of trains – MNDOT wants up to eight trains costing and extra $140 million, NLX suggests only three or four are needed to run the proposed eight daily trips.
  • The track – MNDOT wants two sets of track running the full length of the corridor from the Cities to Duluth, NLX says only 100 miles of the route needs to be double tracked.
  • Bridges – MNDOT wants to replace every bridge along the corridor, NLX disagrees saying if the route was only single track between Sandstone and Superior, it would eliminate the need to replace as many as four bridges, significantly reducing the cost.

MNDOT and NLX have the next several weeks to hammer out the details before the application must be sent. In the meantime, NLX is sponsoring an informational meeting on Thursday, December 3rd in Cambridge, Minnesota. The open house runs from 4:30 to 6:00pm at the Armed Forces Reserve Community Center – Assembly Hall in Cambridge.

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