President Obama pressed a gathering of CEOs today to view cap-and-trade legislation as an aid to American business that would foster green jobs and promote marketplace certainty.

"A competitive America is also an America that finally has a smart energy policy," Obama told about 100 executives who belong to the Business Roundtable in Washington.

The climate agenda of Obama and congressional Democrats has faced stiff opposition from big business. The U.S. Chamber of Commerce has lobbied fiercely against the cap-and-trade bill that appears to be bogged down in the U.S. Senate. And it has been joined by most large conventional energy companies.

The Business Roundtable, which includes the chief executives of the country's largest companies, has taken a more nuanced approach, conferring with the administration on technologies that could reduce greenhouse gases.

Many of the executives have met with White House or Treasury Department officials in recent months to discuss energy policy, according to multiple sources and White House logs (Climatewire, Jan. 4).

But some companies, including Exelon Corp. and Apple Inc., have left the chamber over its staunch opposition. And there are utilities and other energy companies that are urging business and political leaders to put the issue to rest, even if it means higher costs.

"If we decide now that we're putting a price on this pollution in a few years, it will give businesses the certainty of knowing they have time to plan and transition," Obama told the group. "This country has to move towards a clean-energy economy. That's where the world is going."

Obama said he sympathized with companies that would face transition costs, and would work with the CEO group and others to find the right balance.

He also reiterated a pledge made in his State of the Union address to make "tough decisions" on offshore drilling, seen by some as an offer to allow more oil and gas exploration off U.S. coastlines. But Republicans like Sen. Lisa Murkowski (Alaska) have complained that his offer was undercut by proposals in the White House budget to eliminate as many as 21 tax breaks for the oil and gas companies. The industry has said the tax changes could cost oil and gas producers $80 billion.

The meeting was held at the tony St. Regis hotel, blocks from the White House off K Street. Obama was introduced by Ivan Seidenberg, chairman and CEO of Verizon and head of the Business Roundtable. The executives offered little visible reaction, although there was a murmur when the president mentioned what he called "everybody's favorite topic, taxes."

In addition to the CEOs, Commerce Secretary Gary Locke and top White House adviser Valerie Jarrett were in the audience. Obama mingled briefly after his remarks, but did not take questions.

The roundtable's executive board includes Rex Tillerson of Exxon Mobil Corp., Michael Morris of American Electric Power, Jeffrey Immelt of General Electric Co., Michael Duke of Wal-Mart Stores and David Cote of Honeywell International.

Stressing int'l competition

Obama used the speech to try to explain why his agenda is good for business and good for the country, even if some of its key elements aren't popular with the corporate world in the short term. While free enterprise is crucial, he said, government has a role to play.

He argued for his financial regulation overhaul, saying the government needs to guard against reckless financial activity that creates a "race to the bottom." And he said his health care plan will provide certainty and head off a future of ever-rising health insurance costs. And he assured them that the $787 billion stimulus passed last year was not the beginning of regular government intrusion into the marketplace.

He stressed that the stimulus has been able to "jump-start" the clean-energy industry, saying that will lead to 720,000 jobs by 2012, the last year of his first term.

"To take just one example, the United States used to make less than 2 percent of the world's advanced batteries for hybrid cars," Obama said. "By 2015, we'll have enough capacity to make up to 40 percent of these batteries."

Critics of the stimulus say that the administration's job claims are exaggerated, noting that employment is hovering around 10 percent.

He urged the business leaders to look to other parts of the world, "from Asia to Europe," where he said government spending in key areas could foster better business climates in the future.

"They're building high-speed railroads and expanding broadband access," Obama said. "They're making serious investments in clean energy because they want those jobs. These countries know what's required to compete in the 21st century. But so do we."