UK, Calif. to Strike Global Warming Deal

Britain's Prime Minister Tony Blair , right, chats with Steve Jobs, left, Chairman of Apple Computers and John Chambers, centre, Chairman of Cisco Systems when he visited the Cisco Systems headquarters in San Jose, California, USA, Sunday, July 30 2006. (AP Photo / Stefan Rousseau/PA) (Stefan Rousseau - AP)

LONG BEACH, Calif. -- British Prime Minister Tony Blair and California Gov. Arnold Schwarzenegger announced an agreement Monday to bypass the Bush administration and work together to explore ways to fight global warming.

The two leaders announced the pact as they met with business leaders on clean energy and climate issues against the backdrop of a BP oil tanker at a terminal in the Port of Long Beach.

"We see that there is not great leadership from the federal government when it comes to protecting the environment," Schwarzenegger said. "We know there is global warming, so we should stop it."

Addressing business leaders during an earlier panel discussion, Blair called global warming "long-term, the single biggest issue we face."

The agreement calls for collaboration on research into cleaner-burning fuels and technologies, and looking into the possibility of setting up a system whereby polluters could buy and sell the right to emit greenhouse gases. The idea is to use market forces and market incentives to curb pollution.

Environmental groups questioned the value of the agreement, calling it little more than a symbolic gesture.

California is looking to cut carbon dioxide _ a byproduct of coal, oil and gasoline combustion _ and other heat-trapping gases that scientists say are warming the planet. President Bush has rejected the idea of ordering such cuts.

"This is an agreement to share ideas and information. It is not a treaty," said Schwarzenegger spokesman Adam Mendelsohn. "Right now, all we are doing is talking about sharing ideas."

"It will be markets, not governments, that will decide which technologies are chosen in the future. Governments can give clear, credible, long-term signals to the market which will enable companies to develop the technology that will result in cleaner technology, more energy efficient technology," said a Blair spokesman, speaking on condition of anonymity, in line with government policy.

Kristen Hellmer, a spokeswoman for the White House Council on Environmental Quality, said the agreement was "a wonderful amplification" of talks last year between the president and Blair.

"It's just another step forward," she said. "This is a way to share ideas, what works and what doesn't work."

For Schwarzenegger, a Republican who is running for a full term in November, the agreement comes at a time when he has been trying to distance himself from Bush in this mostly Democratic state.