Politicians and environmentalists have always been strange bedfellows, never more so than during current times. Our legislative leaders struggle to come up with a way to regulate the carbon trade, to ensure that business is, one way or the other, penalized for excess energy consumption. As the political landscape changes, we can see wild swings from one extreme to the other, as various schemes are considered to cut back on carbon emissions.

In 2009, the political landscape was such that the House of Representatives in the United States was able to pass a comprehensive raft of legislation, albeit narrowly. The American Clean Energy and Security Act included a controversial “cap and trade” scheme, somewhat similar to the Emissions trading Scheme in Europe. Despite the efforts required to pass this through the House, little has been achieved since that time in the Senate.

As 2010 unfolds, carbon trade is front and center as three Senators, representing a bipartisan approach craft a bill to bring carbon trade legislation in front of the Senate. Environmentalists continue to bicker, however, noting that meaningful legislation appears to be coming weaker and weaker with each committee reading.

Senators Graham, Lieberman and Kerry are proposing that the cap and trade scheme is much more restricted when compared to the options put forward by the House of Representatives. Initially, the scheme would only apply to the power sector, but there would be provisions within the legislation to potentially expand it soon thereafter.

When the late Sen. Kennedy’s Senate seat fell to a Democrat under a huge upset, the U.S. Senate Democratic majority lost its overall majority and thus the ability to steamroller legislation through. Republicans were adamant in their opposition to much of the climate legislation and they now have a considerable say in whatever goes forward. carbon trade scheme seems unlikely according to them, but it remains to be seen what can be reconciled.

Is it possible that the Environmental Protection Agency could move to implement restrictions of its own, should widespread Legislation not come out of Congress? They already found that carbon emissions are “a danger to public health,” and some Republicans see this as a way to push restrictions through, by a back door.

Every business and our economy in general will be impacted by climate carbon trade restrictions, when and wherever they arise. Alternative energy formats simply must be embraced and carbon emissions restricted one way or the other. Around the country, certain state or regional initiatives are active, but could it be that federal legislation would seek to stop such schemes, before the nationwide initiative could be put in place?

2010 may bring federal carbon trade legislation and every business must consider how it can become sustainable, curtail energy use and ensure that it is operating efficiently, under all costs.

Daniel Stouffer has much more information about the carbon trade and how a visit to www.verisae.com can be of use to you.