Obama calls on House to pass climate bill

WASHINGTON (Reuters) - U.S. President Barack Obama on Tuesday called on the House of Representatives to pass a comprehensive climate change bill, which Democrats hope to debate and pass on Friday.

"The nation that leads in the creation of a clean energy economy will be the nation that leads the 21st century global economy," Obama told reporters at a White House press conference.

"And that is why I urge members of the House to come together and pass it," he added.

The legislation aimed at combating global warming would establish a system to cap greenhouse gas emissions and require companies to acquire permits for the carbon dioxide they release into the atmosphere.

"At a time of great fiscal challenges, this legislation is paid for by the polluters who currently emit the dangerous carbon emissions that contaminate the water we drink and pollute the air we breathe," Obama said.

Despite Obama's initial proposal to auction 100 percent of carbon permits, however, the House bill would give the majority of permits to industries for free.

(Reporting by Ayesha Rascoe and Tom Doggett; Editing by David Gregorio)