As business owners and leaders, we understand that climate change if not addressed, will impose substantial economic costs on the United States. All of us will spend more money to harden our infrastructure, repair storm-damaged homes, pay more for health care and fresh water and watch property values deteriorate. These costs will make the US economy less productive and less competitive. This is especially bad news for the small to mid-size businesses that create the most jobs in our country.

The proposed Keystone XL pipeline is not an economically viable project. We believe that the market would not be able to bear the true cost of the pipeline without the government absorbing liability and shifting the costs of risks onto society as a whole. This is similar to the case of nuclear energy, where no plant would be built without government shouldering liability. This is as much a government subsidy as a direct payment would be.

If the private sector were to internalize the full cost, including the setting up of a fully adequate fund against damage from the possible spills, land despoliation, water clean-up, medical costs, carbon emissions, and other damages associated with the pipeline, it would be a losing proposition financially.

We do not believe that the pipeline will create the large number of jobs its supporters contend. As a March 2012 study from Cornell University noted, an equal investment in clean energy generates 3 to 4 times as many jobs as investments in fossil fuels, without the potential environmental hazards posed by pipelines like Keystone XL. The pipeline will do very little (and at great cost) to improve the nation’s energy security. In fact, much of the output is destined for export.

Instead of risking our future by increasing fossil fuel use, the United States needs to take action to both invest in clean energy and lower our own carbon output. Doing so will put us in a better negotiating position to encourage other large emitting nations (mainly China and India) to reduce their own GHG emissions.

The money needed to build the pipeline would be more productively directed towards energy efficiency, renewable energy sources and infrastructure (such as smart grid). The US needs to step up investments in the $5 trillion global clean technology market ­– and the jobs that go with it. We applaud the gains that Germany and other nations are making in clean energy, and are concerned that the United States is becoming less competitive in this dynamic industry.

All these economic reasons and more are why close to 1,000 business leaders have signed a letter to the President asking to cancel the Pipeline.

American Sustainable Business Council

American Sustainable Business Council

The American Sustainable Business Council (ASBC) is a national coalition of mission-driven businesses, social enterprises and sustainable business networks working to create a vibrant, just and sustainable economy. What unites us is a deep belief that we must move to a new economy that is grounded in principles of sustainability and equity.

The Council represents over 55,000 businesses and enterprises and more than 150,000 executives, owners, investors, entrepreneurs and business professionals. It is comprised of partners, which are organizations that represent businesses and social enterprises as well as entrepreneurs, executives, owners and investors committed to building a vibrant, just, and sustainable economy.

ASBC promotes policy change by educating and informing the business community, policy makers and the media about the business case for change, and by engaging the leaders of businesses and enterprises in building broad support for the policies America needs. We work on a range of policy areas, including: financial reform, health care, chemicals policy, climate change and business taxes.

We believe that the policies that will lead us to a sustainable and just economy are also good for business and good for America. Making the right commitments and investments will produce more and better jobs, build strength in key technologies, and make the U.S. more independent and secure.

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