Beyond Kyoto

Environment: As European climate-change policies crumble, the U.S. approach is finding vindication | Mark Bergin

European company Arcelor Mittal, the world's largest steelmaker, is a model of environmental care. Since 1990, the manufacturing juggernaut has reduced its carbon dioxide emissions 20 percent, exceeding European targets by two and half times.

Nevertheless, company leaders warn that restrictive government caps on greenhouse gases may soon force the closure of two large factories in France. The resulting dip in production from such a move would press Arcelor Mittal to import steel from far less efficient factories in the Third World, where CO2 emissions restrictions are not enforced.

Hardly an isolated incident, businesses throughout Europe are laying off employees, outsourcing production, and reining in innovation as a luxury no longer affordable. Michel Wurth, president of Arcelor Mittal France, calls the situation "absolutely ridiculous."