The Sky is Not the Limit: - Carbon Trade Watch

5.6 Private Sector TradingInitiativesChicago Climate Exchange: CCXhas been developed by 28 largecompanies, including Ford, DuPontand BPAmoco, with the cities ofChicago and Mexico city, a group thatemits 700m tonnes of carbon dioxideeach year, more than United Kingdomdoes. 1 It intends to build up to ascheme between Canada, the USAand Mexico in 2003 and then open tointernational participants in 2004. 2 Inthe words of CCX chairman, RichardSandor, “there have been years ofdiscussion about the potential fortrading carbon emissions, but theChicago Climate Exchange will offerthe first test of the concept on a scalewith global potential.” 3Partnership for Climate Action: PCAwas launched just before COP-6 bythe US NGO Environmental Defense,Alcan, BP, Dupont, Ontario PowerGeneration, Pechiney, Shell andSuncor. Their aggregate emissionsexceeded 360 million metric tons ofCO2 in 1990, which means this groupwould be the 15th largest emitter in theworld if it were a country. 4Pilot Emissions Reduction TradingProject (PERT - now known asCleanAir Canada): “In 1995 a groupof companies in Canada, (includingDuPont), recognised emissions tradingwould be a reality and that we wouldlike to participate in it.” 5 The groupdecided to launch PERT and obtainedapproval from the Ontario Ministry ofthe Environment. “PERT has becomea learning forum in which more than102 entities, including companies,NGOs, academia and governmentagencies could come together. Wewere no longer just talking aboutemissions trading but had a systemwhich allowed for real trading toexist.” 6 PERT recently evolved intoCleanAir Canada. 75.7 Environmental NGOsEnvironmental Defense:Environmental Defense (formerlyEnvironmental Defense Fund - EDF) iswidely credited with developing andwriting much of the Title IV section ofthe US Clean Air Act whichestablished a nationwide tradeablepermit scheme for sulphur dioxide(SO2). 1 The group has been a longtimestaunch advocate of marketbasedcorporatist approaches toenvironmental problem-solving. Theirown research on the effects of the USsulphur trading system has largelyignored the concerns of communitygroups.Exposure to increased levels of SO2downstream from power utilities andindustries were now emboldened bythe market to increase emissions solong as they could buy relatively cheapcredits in the EDF-backed scheme.While it is indeed true that aggregatelevels of SO2 have decreased in theUS, academic studies and The NewYork Times attributed thisphenomenon more to the use ofrelatively inexpensive technologiesdeployed onsite and processinnovations rather than from trading. 2Some locations, a large majority ofwhich are poor and predominatelycommunities of colour, have beenreporting increased emissions of SO2and resultant toxic co-pollutants suchas Particulate Matter and VolatileOrganic Compounds lethal to humanhealth and the environment. 3 Thisprompted the National EnvironmentalJustice Advisory Council, agovernment appointed body, tooppose any expansion of pollutiontrading schemes in the US and calledon the US government to address theenvironmental justice impacts ofemissions trading. While EDF hassince paid more heed to issues ofenvironmental justice, it has notdeviated from its insistence onexpanding pollution trading initiativesboth domestically and on a globallevel. The group has lobbied36