Paul's take is that strengthening private property protections is the soundest broad-based environmental policy. After all, when you pollute the water/air you're damaging your neighbor's property!
Global warming is a specific issue though - he told bill maher that he thinks government should do more to fight it. Specifically, he say that by subsidizing oil and coal, we encourage emissions. What's more, that takes away from the consumer's ability to vote with their wallet by giving dirty power a leg up on cleaner alternatives that might otherwise be cheaper. War in the mid east
is another form of oil subsidy, too.
One detail - Paul opposes the kyoto treaty, because it places all of the emission cutting burden on America, and none on China (the biggest polluter on the planet). He says he'd be interested in working with other countries to figure out an international agreement on the matter, so long as it didn't place undue or unfair burden on American industry.