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Michigan Chamber Urges Levin, Abraham to Vote NO on Proposed Kyoto Treaty

11 December 1997

Michigan Chamber Urges Levin, Abraham to Vote NO on Proposed Kyoto Treaty

    LANSING, Mich., Dec. 11 -- The Michigan Chamber of Commerce
is calling upon U.S. Senators E. Spencer Abraham (R-Michigan) and Carl Levin
(D-Michigan) to vote no on a proposed international agreement on global
warming reached today in Kyoto, Japan.  If signed, the agreement would require
the United States to cut so-called greenhouse gas emissions to 7 percent below
1990 levels.
    "Both of our U.S. Senators should support Michigan's autoworkers and
automakers by voting no the proposed Kyoto treaty because it would have a
catastrophic impact on Michigan," said Michigan Chamber President & CEO Jim
Barrett.
    Citing Michigan-specific findings of a widely reported study conducted by
WEFA, Inc., a Pennsylvania-based economic consulting firm, Barrett said the
agreement would:
    -- Raise gasoline prices nearly 50 cents per gallon.
    -- Raise residential electricity prices 55% above the business-as-usual
       estimate, and increase natural gas prices 56%.
    -- Raise electricity prices for industry by 87%, and natural gas prices by
       72% above the business-as-usual estimates.
    -- Cause total output in Michigan (Gross State Product) to fall
       $7.8 billion below the baseline.
    -- Send 94,000 Michigan workers to the unemployment line.

    The proposed Kyoto agreement was reached after the White House freed U.S.
negotiators to abandon a milder plan.  "When the Clinton Administration
abandoned the milder plan, they also abandoned Michigan's auto industry," said
Barrett.
    The Michigan Chamber recently adopted a policy statement on global climate
change based on the following principles:
    -- Global climate policy must be based on sound science and an assessment
       of the economic impacts.
    -- The policy must be balanced, cost-effective and apply to developed and
       developing nations alike.
    -- The policy should accelerate work on the science and concentrate on
       research and technology development.
    "The agreement falls short on all aspects of our policy statement,
particularly as it pertains to developing nations," said Kevin Korpi, Director
of Environmental & Regulatory Affairs for the Michigan Chamber.  "It is unfair
to require developed nations to cut emissions and not ask developing nations
to do the same."
    Korpi said the Michigan Chamber strongly agrees with comments by U.S.
Senator Carl Levin who said, "Without a commitment from the developing
countries, which will account for most of the growth of greenhouse gases in
the near future, there won't be any real reduction in global emissions.  Also,
without that commitment, manufacturing companies will have an incentive to
move facilities and jobs from the U.S. and other advanced economies to the
developing countries."
    The Michigan Chamber of Commerce is a statewide business organization
which represents approximately 7,000 employers, trade associations and local
chambers of commerce.  The Michigan Chamber was established in 1959 to be an
advocate for Michigan's job providers in the legislative, political and legal
process.

SOURCE  Michigan Chamber of Commerce