Climate Change

Issue

Should Minnesota implement a state climate change policy?

Policy

• Strategies should be implemented to reduce greenhouse gas emissions, devolving from policies adopted at the international and national levels in order to limit the competitive impact on individual nations or states. Minnesota has a limited ability to bring about a globally significant reduction in greenhouse gas emissions. Global greenhouse gas emissions increase about every three months by more than Minnesota’s total annual emissions.

• The Legislature should not pass legislation that will endanger the competitive viability of Minnesota businesses in the global marketplace. Prior to passage of any new climate change policies, the Legislature should review an economic analysis, by industry sector, of the cost impacts of the proposed legislation and the impact on Minnesota’s consumers and economy. Minnesota imports most of its energy and exports most of the production from energy intensive industries – i.e., taconite and wood products. These industries compete globally. Unilateral climate action by Minnesota will cause harm to our state’s economy without making measurable environmental impact.

• The Minnesota Chamber supports and encourages voluntary climate change measures that are compatible with national climate change commitments and Minnesota’s need for reliable, competitively priced energy. Passing new state laws will not guarantee the problem will be solved. Reducing emissions means changing behavior. The Chamber believes that broad-based, long-term voluntary programs to change individual and business behaviors may have the greatest potential to affect greenhouse gas emissions, short of national legislation or international agreements.

Business Impact

In 2007, the Chamber participated in the development and passage of the Next Generation Energy Act, making Minnesota a leader among states developing climate change strategies. The Chamber and businesses from around the state as well as a variety of other stakeholders were members of the Climate Change Advisory Group appointed by Governor Pawlenty under the 2007 legislation to develop a state Climate Change Action Plan. The Chamber also participated in the Midwestern Greenhouse Gas Accord. This group developed a draft policy framework for a regional cap-and-trade program, but recommended a strong preference that such a program be adopted at the federal level.