Kate Sheppard at Mother Jones:

As I reported yesterday, some Senate Democrats are calling for leadership to abandon a cap on carbon dioxide pollution and instead move forward with a bill that focuses only on energy provisions. And President Barack Obama yesterday also acknowledged that this may well be what happens in the Senate. In remarks to Senate Democrats today, however, Obama called on his party not to take “the easy way out” by dropping a cap on emissions.

Here is the relevant part of the transcript:

But — and this is just the point that I wanted to make because it came up in New Hampshire yesterday — we still — one of the best ways to be on the forefront in energy is to incentivize clean energy, and discourage the old sources or methods that aren’t going to work in the future.

And so the fact that Joe Lieberman is working with Lindsey Graham, John Kerry has been all over this — the three of them are coming together to try to find a workable, bipartisan structure so that we are incentivizing and rewarding the future — and understanding that there’s a transition, so that we’ve got to make sure that the disruptions are minimized as we move into this new energy future — that’s going to be vital.

So don’t give up on that. I don’t want us to just say the easy way out is for us to just give a bunch of tax credits to clean energy companies. The market works best when it responds to price. And if they start seeing that, you know what, dirty energy is a little pricier, clean energy is a little cheaper, they will innovate, and they will think things through in all kinds of innovative ways.

So I want to congratulate specifically John Kerry, Joe Lieberman, and Lindsey Graham, who it probably doesn’t help him for me to compliment him — (laughter) — but has been very thoughtful in terms of how they’re approaching this issue.

Also of interest, Senator Graham denounced the prospect of splitting energy from cap and trade this morning:

Graham on Wednesday also rejected moving the Senate energy bill alone. “If the approach is to try to pass some half-assed energy bill, and say that moves the ball down the road, forget it with me,” the South Carolina Republican told business leaders from the renewable energy industry on Wednesday.