According to Obama: Polluters Must Pay

Democratic presidential candidate Barack Obama proposed spending $150 billion over 10 years on new clean-energy programs, including proposals to reduce greenhouse gas emissions and to develop new energy sources, according to senior campaign advisors.

Obama's call for polluters to pay for all carbon emissions is the central element of his version of a "cap-and-trade" system, a common feature in greenhouse-gas-reduction proposals. Under cap-and-trade plans, pollution rights would be auctioned, sold or given to businesses, which could then resell or trade them to other businesses that need to purchase additional pollution rights. A national cap would be imposed on the total carbon emissions. Obama supports a mandatory reduction of carbon emissions to 1990 levels by 2020, and an 80% reduction below 1990 levels by 2050 -- the same cuts sought by California and more ambitious than the 50% reduction by 2050 targeted by European countries. Among the major candidates in the Democratic field, only New Mexico Gov. Bill Richardson, a former Energy secretary, has announced a target that goes further: a cut of 90% by 2050. As part of his $150-billion proposal, Obama plans to suggest a $50-billion Capital Technologies Venture Fund, with $10 billion a year invested over five years, to help move new clean-energy technology to market. This is similar to the $50-billion Strategic Energy Fund proposed by rival candidate Hillary Rodham Clinton. Sen. Clinton (D-N.Y.) wants to finance the project by requiring oil companies to invest in renewable energy or pay into the fund. Like Clinton, Obama backs a requirement that 25% of electricity come from solar, wind, geothermal or other renewable sources by 2025.