Today's discussion on international issues and the subject of engaging developing countries is especially important.

I am deeply concerned that adopted a cap-and-trade or carbon tax policy will have the sole effect of driving jobs offshore, without reducing CO2 emissions. Manufacturing is energy-intensive, and as such, is especially sensitive to increasing costs of electricity.

If electricity prices were to increase in the United States as much as they did in Germany after implementation of the Kyoto Agreement, as we heard from Dr. Ulreich last month, we could see many companies making the decision to move their jobs to China or India -- who do not have carbon caps -- or face going out of business entirely.

Today, we will hear from many distinguished witnesses, including Dr. Edward Steinfeld from the Political Science Department at MIT, which recently released its Coal Study. Chapter 5 of the study discusses in detail the observations of the MIT researchers that spent time in China studying the energy markets. It is important to note that they did not just visit Bejing, but went to the grassroots level, where things actually get done. The picture they paint is pretty bleak.

Fully one-fourth of the Megawatts operating in China is "illegal" -- meaning that they never received official approval from the Chinese Government.

Even if the Chinese government were to pledge to reduce carbon emissions, it is doubtful that they have the ability to enforce that on the ground.

I welcome any additional insight that Dr. Steinfeld can provide, particularly regarding the impact of a "10-year lag" in carbon emissions control by China on the American economy and jobs.

I'd also like to welcome Mr. Pramit Pal Chaudhuri, Foreign Editor of the Hindustan Times. I look forward to hearing from him India's perspective on the subject of climate change and proposed carbon emission control regimes.

With that Mr. Chairman, I yield back.