Rio Tinto CEO: US Needs To Take Lead On CO2 Reduction

9th Jul 2010 02:06

LONDON (Dow Jones)--The U.S. needs to take the lead in developing a carbon dioxide emissions-reduction plan, Rio Tinto PLC's (RTP) CEO said Thursday. When asked for his views on Emissions Trading Schemes that reduce CO2, Tom Albanese said he wouldn't comment on any country-specific schemes, but noted that the "U.S. has to be early to this game. They need to be setting the lead on this." Albanese was speaking at the Melbourne Mining Club here in London. The Anglo Australian miner is already seeking to reduce its carbon footprint through energy efficiency and new technology, Albanese said. He added that smaller countries who choose to move ahead with aggressive carbon-reduction plans in the absence of the U.S. may be "jumping the gun." "Ultimately, the policies and practices of India, China and the U.S. will be the most important drivers of success, or failure, in this key area," he said. He noted that any carbon emission-reduction plan needed to be phased in and predictable. It also needs to be net revenue neutral and spur innovation in areas such as carbon sequestration. The "ultimate solution is through innovation," he said at the Melbourne Mining Club. At the moment, the U.S. doesn't have a country-wide CO2 emissions trading scheme or a cohesive climate change law. Lawmakers have shifted their attention away from the climate-change bill to deal with the repercussions of the massive oil spill in the Gulf of Mexico. U.S. lawmakers are also focused on preparing for the mid-term national and state elections in November. In the absence of a nation-wide emissions trading plan, 10 U.S. states have banded together to form their own emissions-trading scheme called the Regional Greenhouse Gas Initiative. California has its own climate-change law, but it is still finalizing a cap-and-trade emissions plan. -By Alex MacDonald, Dow Jones Newswires; +44 (0)207 842 9328, [email protected] (Cassandra Sweet in San Francisco contributed to this story) (END) Dow Jones Newswires July 08, 2010 21:06 ET (01:06 GMT)