American International Group has left the U.S. Climate Action Partnership following queries from U.S. lawmakers about why the firm was funneling taxpayer money into USCAP – the organization lobbying Congress to pass Cap-and-trade legislation, Dow Jones reports.
USCAP recently called for a cap-and-trade system, a 42 percent emissions reduction below 2005 levels by 2030 and a 80 percent reduction by 2050, limits on emissions from petroleum products and natural gas, and a carbon market board to examine offsets and contain costs.
“American taxpayers now own 80% of AIG and they should not have to fund its lobbying efforts to make cap-and-trade a reality,” said Rep. Joe Barton, R-Texas, who initiated the inquiry.
“The insurance industry stands to gain from the creation of a potential multi- trillion dollar market in insuring climate change policies that could range from protection for potential weather-related incidents to liability for carbon dioxide storage leakage,” according to the article.
AIG says it still believes in USCAP’s mission, but that “participation in USCAP is not consistent with the spirit of AIG’s decision to suspend federal lobbying activity.”
USCAP was formed in 2007 by General Electric, DuPont, Alcoa, Caterpillar, Duke Energy, PG&E, FPL Group, PNM Resources, BP, Lehman Brothers, Environmental Defense, Natural Resources Defense Council, Pew Center on Global Climate Change, and World Resources Institute.
AIG joined USCAP in 2007.
(This article has been corrected, it had incorrectly stated that USCAP called for a 42 percent emissions reduction below 2005 levels by 2050. It is actually calling for a a 42 percent emissions reduction below 2005 levels by 2030.)