Small Business' Silence on US Cap-and-Trade

Cap-and-trade is a crucial part of global efforts to reduce CO2 emissions, however the American small business community is not convinced. The climate change legislation, including cap-and-trade has supporters, but there are those in Congress who are fighting the bill alongside powerful corporate interests.

The US clean energy economy is comprised of more than 68,000 companies and 770,385 sustainable jobs. Many of these Green jobs were created by small businesses. Despite the fact that sustainable businesses is creating jobs, this has not translated into support for cap-and-trade from the small business community.

In a recent report, the Pew Charitable Trust's Executive Director Byron Kennard said that "the 27 million small businesses in the United States, which produce 51 percent of private sector output, are turning to environmentally beneficial services in greater numbers." There is a growing number of small eco-entrepreneurs who are collectively helping to drive the economy out of recession. "Economically, politically, and socially as well, these green businesses are having a real impact," said Kennard.

Small businesses are increasingly Green, yet they are mute on cap-and-trade. Small companies are disengaged from the climate debate, yet environmentally conscious, small enterprises could become influential supporters of climate legislation.

"Small business has to be a strong constituency if this legislation is going to be passed," said Scott Hauge, president of Small Business California. "If we are going to create the innovation, we are going to create the jobs, we are going to reduce energy use, there needs to be a concerted focus on small business."

The conspicuous silence of the small business community is largely attributable to a lack of understanding. However, there are some concerns that are warranted. The bill seems to favor big business and some small business owners fear the legislation could create a complicated regulatory burden. Further there is concern about increased energy costs.

The small business community will remain silent as long as they fail to understand that cap-and-trade is an efficient means of reigning in business emissions.


Next: US Cap-and-Trade Implications for Business / Helping Small Business Accept US Cap-and-Trade

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