FOR IMMEDIATE RELEASE: July 2, 2008
Schumer Pushes To Give Corning Incorporated Tools Needed To Off-Set Rising Costs Of Producing Carbon-Intensive Goods And Help Keep A Competitive Edge In Global Market
Corning Incorporated Has Long Been a Hotbed for Technological Innovation and Economic Development but Foreign Competition Under a Cap and Trade System Could Hinder Growth and Development Schumer Provision Would Compensate American Companies For Increased Costs of Producing Carbon-Intensive Goods - Offset Higher Prices and Even the Playing Field Schumer Visits Corning's Sullivan Park Research Center with Local Leaders and Pushes to Ensure Upstate Companies Can Thrive in Increasingly Global Market
With companies across Upstate New York struggling in the face of increasing global competition, U.S. Senator Charles E. Schumer today visited Corning Incorporated’s Sullivan Park Research Center and touted a provision he introduced to the Lieberman-Warner Climate Security Act of 2008 to ensure that manufacturers like Corning can remain competitive in a globalized market once the United States implements a cap and trade system for carbon.
“From the glass envelope that brought affordable lighting to the masses, to television tubes that changed the world of entertainment and education, Corning Incorporated has consistently brought the Southern Tier and all of Upstate New York to the very edge of technological innovation,” said Schumer. “At a time when we have to get serious about reducing carbon emissions across the globe, we have to be sure that there are some simple provisions in place to protect companies like
“Senator Schumer’s sponsorship of the export amendment to the climate change legislation will help ensure that
Corning Incorporated, headquartered in
However, once the
While the need for comprehensive legislation to reduce GHG emissions and tackle climate control is dire, Schumer noted today that simple provisions can be put into place to ensure we protect jobs and the local economy across Upstate, as well as the environment.
Originally the climate change legislation proposed by the Senate earlier this year provided only minimal protection for these companies in the form of “free allowances” for imports, but excluding exports. Companies could then sell these reserve allowances to compensate for the increased costs of producing carbon-intensive goods. With Corning, Inc. and similar companies depending heavily on exports for their continued success, Schumer authored an amendment to the legislation that would significantly offset the increased cost of energy for exported goods by providing allowances for imports and exports.
“By giving companies like Corning allowances for both imports and exports, we can off-set the higher price of carbon-intensive goods from the US against those manufactured in countries that don’t regulate carbon emissions, and allow our absolutely critical manufacturers to remain competitive and thrive,” said Schumer.
A cap and trade system for greenhouse gas emissions works by creating a financial incentive to reduce emissions. After an environmental regulator assigns a cap on emissions to a certain group of polluters, such as power plants, the cap is then divided into individual permits which dictate how much pollution one plant is able to emit. Individual companies are then free to buy and sell these permits in order to draw a profit, while cutting back on GHG emissions. While the system is proven to make major strides in reducing greenhouse gases, energy intensive companies that rely on carbon emissions to develop their products worry that the cost of producing these good will climb too high and they will not be able to remain competitive against manufacturers in countries without emissions limits.