WASHINGTON (Reuters) - President Barack Obama's $3.55 trillion budget, released on Thursday, retains his plan to cut climate-warming carbon dioxide emissions by auctioning off 100 percent of emission permits to industries.
That is at odds with some in Congress, including members of Obama's own Democratic Party, who are pushing for 50 percent or more of those emissions to be given away in the early stages of the plan to ease the transition to a lower-carbon economy.
Opponents fear that charging companies for the carbon they emit would put unnecessary pressure on an already struggling economy.
Selling all the emission permits is projected to bring $646 billion in revenue over the first years of the program, and White House budget director Peter Orszag said that would not change when more details about the administration's budget request are released next week.
We need a 100% auction otherwise it is just a large gift to the polluters.