Copenhagen - Just A Good Party?
So, in the end, was the UN Copenhagen climate summit nothing more than a good party
and a massive waste of hot air? And what now for US businesses and consumers?
It is, frankly, far too early to evaluate the potential long-term impact (or lack thereof) of the Copenhagen Accord. It is evident the combination of a massive recession and concerns regarding the science used to justify stringent CO2 controls are having a legislative impact. And it certainly seems carbon traders took a hit because Copenhagen is widely perceived to have been a bust. But in the final analysis, it is EPA's endangerment finding, and not the Copenhagen Accord, that matters most for US businesses, consumers, and politicians.
Here's why: EPA's endangerment finding effectively triggers significant Clean Air Act regulatory requirements, and thereby places the fate of US businesses and consumers in the hands of the federal courts. Absent Congressional action taking CO2 regulation away from EPA (and right now passage of climate change or energy policy legislation taking ownership of the CO2 issues is unlikely due to splits in the Democratic Party) there will be a muti-year torrent of litigation from environmentalists, business groups, and everyone in between challenging pretty much everything EPA chooses to do (or not do). This means, in turn, that the courts will effectively make or break US energy policy and thereby shape the future of the US economy.
