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Vol. 2, No. 14: July 23, 2007
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The Ecosystem Marketplace's V-Carbon News
Carbon beyond Kyoto... Carbon for the Rest of us
Measuring Momentum
This week Ecosystem Marketplace, in partnership with New Carbon Finance, launched our first annual State of the Voluntary Carbon Markets 2007 report. We believe this report will serve as a candle to illuminate previously undocumented expanses of the voluntary carbon markets. Through the process of collecting data from individual suppliers, as well utilizing publicly available registries, we accounted for a total of 23.7 million tons of carbon dioxide equivalent (MtCO2e) traded on the voluntary markets in 2006. Of this, 10.3 MtCO2e were transacted on the Chicago Climate Exchange and a confirmed 13.4 MtCO2e were transacted by the OTC voluntary offset markets. And what are all these trades worth? We estimate the OTC transactions accounted for a value of $54.9 million, and including the CCX markets are conservatively worth $91 million. To delve deeper check out the (free--thanks to the report sponsors!) report at Ecosystem Marketplace.
While we looked back at last years transactions, the voluntary carbon markets continued to march forward--and gain attention at the federal level. On one side of the Atlantic the United States' House Committee on Energy Independence and Global Warming held a hearing to discuss the voluntary carbon markets. Across the pond, the United Kingdom's Department for Environment Food and Rural Affairs announced a plan to move forward with a Code of Best practices for the market. Sans government guide, companies have continued to step up to carbon neutral commitments--both Flex Car and the health care company, Abbott recently announced plans to offsetting their fleets; GHG emissions.
—The Editors
For comments or questions, please email: vcarbonnews@ecosystemmarketplace.com
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VOLUNTARY CARBON
House Committee Chairman Examines "Climate Commodities"
On July 18th, the Select Committee on Energy Independence and Global Warming held a hearing titled "Voluntary Carbon offsets—Getting What You Pay For" to discuss the efficacy and accounting of currently unregulated voluntary carbon offset programs, or "climate commodities." Testimonies included invited representatives from World Resources Institute, Center for American Progress, NativeEnergy LLC, and TerraPass Inc. After the hearing, Committee Chairman Edward Markey (D-MA) sent a letter to Chairman Platt Majoras of the Federal Trade Commission to initiate steps to establish guidelines within the voluntary carbon offset market. Congressman Markey also asked the FTC for evaluation of current guidelines for the marketing of eco-friendly products in an attempt to apply similar guidelines to the carbon offset market.
– Read the related House Committee Press Release
– Read the related House Committee Press Release
UK's Department for Environment Food and Rural Affairs (Defra) Commits to Offsetting Code of Best Practice...But is Still Uncertain on VERs
One step ahead of the U.S. House Committee, the UK's Defra announced last week that it would produce a Code of Best Practice for the carbon offsetting industry, which the department plans to have in place by the end of the year. A controversial element of the code posted for review at the end of 2006, was Defra's suggestion that the only viable offset credits were from the regulated, Kyoto markets. In an announcement about the code, Minister for Climate Change, Biodiversity and Waste Joan Ruddock, noted that many consultation respondents, "felt that the Code should include high-quality Voluntary Emission Reductions (VERs) from the non-regulated market... This issue will be considered further as Defra develops the Code."
– Read the DEFRA press release
– Summary of Consultation Responses (pdf)
Fe to tCO2e? Debate over Mixing Iron in the Pacific to Capture Carbon
Planktos, a small California company, has created waves about its plan to mix 80 tons of iron into the Pacific to stimulate plankton growth as means to absorb higher levels of carbon dioxide. The company plans to execute its plankton stimulation plan a few hundred miles from the Galapagos Islands, and then estimate the carbon absorption and sell it as carbon offsets. Environmental groups, such as Friends of the Earth, oppose the plan as it may pose unanticipated and potentially harmful effects. Other climate experts assert that measuring the amount of carbon absorbed by the ocean is difficult, if not impossible, to measure accurately – similar to challenges in assessing absorption due to reforestation projects. Such ambiguities in the accuracy and efficacy of carbon offset projects have engendered efforts to set standards for the voluntary credit market.
– Read the Washington Post article
Health Care Giant Abbott Plans Carbon Neutral Fleet
Abbott, a global health care company, recently announced plans to make its 6,000 sales vehicles carbon neutral and install a solar power system. The fleet currently counts for approximately 11% of the company's total emissions. The company will combine the use of hybrids and the purchase of carbon offsets to neutralize its carbon balance. The new Global Energy Policy also includes, by 2011, a 12% reduction in its purchased energy, a 30% overall reduction in carbon emissions, and a 12% cut of combined fuel/coal consumption by switching to cleaner fuels.
– Read the Climate Biz article
Flexcar and TerraPass Partner to Offset Car-Sharing
Flexcar recently partnered with TerraPass to offer its customers a new "Green Membership." In addition to using Flexcar's environmentally-friendly car-sharing system – which typically employs small, fuel-efficient cars, 30% of which are hybrids – members can now opt to offset the balance of their Flexcar usage with the Green membership. The membership costs $9.95 per year (in addition to the regular $35 annual Flexcar membership fee) and reduces one ton of carbon emissions through TerraPass' certified clean energy projects. It eventually will also include other benefits, including discounts with Flexcar's environmentally progressive partners.
– Read the Flex Car press release
– TerraPass Blog
CLIMATE NORTH AMERICA
A Loop Hole in a Low Carbon Economy?
On July 11th, a bipartisan group of Senators introduced the Low Carbon Economy Act of 2007, an industry and labor union-supported bill to institute mandatory limits on U.S. carbon dioxide emissions, beginning in 2012. The bill's authors, lead primarily by Senator Bingaman (D-NM) and Senator Specter (R-PA), crafted the bill to lower U.S. emissions by 60% below current levels by 2050 (with benchmarking targets in 2020 and 2030). It allows industries to participate in a cap-and-trade system, either to reduce emissions or buy credits. Some environmental groups are critical of the bill as it includes "safety valve" provisions which would initially set a $12 per ton price limit on emission credits, a move that the groups say is somewhat of a loophole that will emasculate greenhouse gas reductions.
– Read the Reuters article
An Ounce of Prevention...Florida Aims to Set Tough Emission Cuts
Florida Governor Charlie Crist is expected to sign executive orders that will adopt tough air pollution standards to reduce greenhouse gas emissions by 80% of 1990 levels by 2050. The announcement, coming just before a global warming summit located in Miami, would reduce greenhouse-gas emissions to 2000 levels by 2017, with the long term goal of emissions lowered by 80%, compared with 1990 levels, by 2050. The orders would also set new emission limits for vehicles, strengthen energy conservation goals for state agencies, and require the use alternative fuels for state-owned vehicles. Florida, the country's fourth largest state by population, may be increasing vulnerable to the effects of climate change, including stronger and more frequent storms and rising sea level, hence such preventive action may reap future benefits for the state.
– Read the Economist article
– Read the CNN article
Acting Locally: 600 Mayors in All 50 States and Puerto Rico Act on Global Warming
On July 13th, 600 U.S. Mayors signed The U.S. Conference of Mayors' Climate Protection Agreement, a pledge to reduce emissions that contribute to climate change. Through this agreement, the mayors assure that by 2012 they will reduce carbon dioxide emissions by 7% below 1990 levels. The agreement is the first climate protection agreement of this type among elected U.S. officials, signifying the growing political commitment to mitigating greenhouse gas emissions.
– Read the US Conference of Mayors Press Release (pdf)
US CEO's, Time for Action is Now on Global Warming
"The time for action is now" to address global warming asserted the Business Roundtable, an association of 160 US chief executive officers from companies such as General Motors, General Electric Co., and Exxon Mobile Corp. In a statement released July 17th, the Washington-based group encouraged the US to take a lead on addressing climate change, including passage of emissions legislation by the current Congress, an improved national emissions registry, and incentives for early investments in emissions reductions and energy efficiency. The partnership did not, however, promote specific emissions legislation as opinions vary in the group concerning mandatory or voluntary strategies and carbon taxes versus cap and trade policies. The Roundtable statement also encouraged more companies to publicly report emissions and for more investments in climate change research.
– Read the Bloomberg article
– Read the Environmental Finance article
CARBON FINANCE
Cutting Carbon without Cutting Returns
A recent report by Trucost, an environmental research group from the UK, states that equity investment funds can reduce carbon impacts by up to a quarter without negative affects on performance. Trucost's second annual ranking of investment funds, titled Carbon Counts 2007: The Carbon Footprint Ranking of UK Investment Funds, analyzed the carbon footprint of 185 investment funds. The report also indicates that other 'green' investment schemes can be achieved without affecting performance. Optimizing an existing growth fund, Trucost demonstrates slightly improved returns with a 21% reduction in carbon emissions. For this study, Trucost calculated a carbon intensity figure per pound of investment by assessing the greenhouse gas emissions per holding, each holding's contribution to the fund, and size of the fund.
– Read the Environmental Finance article
– Read the Trucost article
SCIENCE & TECHNOLOGY
From Maple Syrup to the Big Apple: Report Predicts Significant Global Warming Effects in the Northeast
A recent report from the Union of Concerned Scientists concluded that the climate change effects in the US Northeast will be calamitous by the end of the century. The report outlines two scenarios of the future – one in which actions are taken to reduce emissions and the other if emissions continue to grow. According to the report, without steps to reduce emissions, flooding of Manhattan and New Jersey due to rising sea level and harsher rain storms, droughts, and declining air quality will become regular occurrences. Changing air and ocean temperatures will greatly affect agricultural crops and the lobster industry, and invasive species will become more prevalent. Concurrent with the report's release on July 12th, New Jersey Governor Corzine held a news conference on the effects of global warming on New Jersey.
– Read the New York Times article
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Ecosystem Marketplace is a project of Forest Trends a tax-exempt corporation under Section 501(c)(3).The non-profit evaluator Charity Navigator has given Forest Trends its highest rating (4 out of 4 stars) recognizing excellence in our financial management and organizational efficiency.
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This newsletter and all Ecosystem Marketplace's information services are possible due to donor support. For more information about sponsoring an edition of the V- Carbon News, advertising or donating to Ecosystem Marketplace please contact Katherine Hamilton.
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