Solutions to Trade and Climate Change
Six Steps Toward Greener Trade
Global warming is one of the greatest challenges we face as a nation. But it is not too late to act. With a well-designed climate policy the United States can create new jobs, boost the economy, and depend less on foreign oil. However, we can only accomplish this if we turn the current globalization model around and stake out a new course. The U.S. must be a leader in reducing our emissions. Moving forward, we need to take the following steps if we are to combat the worst effects of global warming:
 1. Build a New Trade Model
All trade agreements must include meaningful and binding labor and environmental provisions. A clear commitment by all WTO member countries must be made to ensure that trade rules cannot challenge or overturn climate measures. Governments must be granted the freedom to implement climate protections without fear of reprisal, and the WTO's practice of disregarding environmental considerations must come to an end. The World Bank and the international finance institutions that work with the World Bank should pro-actively promote and incorporate clean energy technology in any development project they finance. The Bank should also be required to keep track of the greenhouse gas emissions or the 'carbon footprint' of all the development projects it supports.
2. Auction Emissions Permits
In a cap-and-trade system, all emissions permits should be auctioned or directed toward public purposes, rather than given away for free. The proceeds of auctions should be understood as a public resource and utilized to further clean energy solutions.
3. Pursue the Cleanest, Safest, Fastest and Cheapest Solutions First
Revenue raised from emission permit auctions should be invested in the highest-value solutions for emissions reductions first. Increasing energy efficiency in homes, commercial buildings and vehicles is the fastest, cleanest and safest way to reduce our energy use, our energy bills and America's greenhouse gas emissions. Clean, renewable energy sources such as solar, wind and biomass should be deployed to meet our remaining energy needs. Energy efficiency and renewable energy projects have the potential of generating hundreds of thousands of family-supporting jobs particularly in regions suffering from recent losses in the manufacturing sector.
4. Address Deforestation and Illegal Loggin
One fifth of global warming pollution comes from deforestation and the U.S. is one of the largest markets for timber products. By preventing illegally harvested timber and timber products from entering our markets, we stand to dramatically reduce deforestation. Free trade should not mean illegal trade and we must use our trade agreements and trade rules to combat illegal resource extraction.
 5. Establish Mechanisms to Support Workers, Protect Vulnerable Groups and Induce World Action
The revenue from emissions permit auctions should be distributed to create new clean energy jobs, revitalize and retain jobs in existing industries and ensure fair treatment for affected workers and their communities. Auction revenue should go to assist low-and moderate-income households with rising energy costs and other economic impacts and provide adaptation assistance to communities in the U.S and vulnerable nations around the world. To prevent driving the U.S.'s energy intensive industry out of the country, climate border adjustment mechanisms should ensure that imported products reflect the same environmental costs as products produced under domestic climate policy. This would reduce the economic incentive for companies to move and increase the incentive for companies to start reducing emissions wherever they are in the world.
6. Create Jobs and Increase Efficiency
Slowing climate change presents a unique opportunity to create good jobs. To take advantage of this opportunity we must make sure that our climate policies include measures aimed at preventing carbon-leakage and the corollary emissions increases and job losses it entails. Any climate change package put forward needs to include help for U.S. workers, especially those in current energy-intensive industries. These should include:
·Programs for education and training to work with renewable energy and energy efficiency enhancing technology;
·Government procurement measures that prioritize the use of locally produced products, local labor, and payment of prevailing wages;
·Other measures to facilitate the transition for workers from one industry to another; and
·Emergency job loss benefits as a last resort
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