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Greenhouse Gas Emissions Trading: 
How the U.S. Could Tap the Carbon Market

Monday, April 25, 2005
DG-11 Dirksen Senate Office Building
2:00 – 3:30 pm

The Environmental and Energy Study Institute (EESI) and Global Legislators Organization for a Balanced Environment USA (GLOBE USA ) are pleased to invite you to a Congressional briefing on greenhouse gas emissions trading.   A "cap-and-trade" emissions trading system works by setting emissions limits and allowing polluters to buy and sell credits to help them meet that emissions standard.  The European Union Greenhouse Gas Emissions Trading Scheme (EU ETS), which is the largest multi-sector, multi-country emissions trading system in the world, was initiated in January 2005.  Because the United States has not ratified the Kyoto Protocol (which entered into force on February 16, 2005 ), US businesses are not able to participate in the EU ETS.  Some traders estimate that within two years, the carbon trade will be worth euro 10-15 billion ($12-18 billion) per year.   By not participating in this market, US companies potentially could lose out on a profitable market and thus become less globally competitive.  Furthermore, because the United States is the world's largest greenhouse gas (GHG) emitter, accounting for 23.1 percent of the world's GHG emissions in 2000 alone, US actions have a disproportionately large impact on climate.  The Royal Society has calculated that the 13 percent rise in greenhouse gas emissions from the United States between 1990 and 2002 is already larger than the overall cut achieved if all the other parties to the Kyoto Protocol reach their targets. 

Speakers:

• Robert Donkers, Environment Counselor, European Commission  Presentation
• Dr. Michael J. Walsh, Senior Vice President, Chicago Climate Exchange  Presentation   Article
• Josh Bushinsky, State Solutions Fellow, Pew Center on Global Climate Change  Presentation

Various efforts are underway to develop an emissions trading system in the United States .  The Chicago Climate Exchange was the world’s first pilot program for a multi-sector and multi-national market that facilitates the reduction and trade of greenhouse gas emissions.  In addition, nine Northeastern and Mid-Atlantic states (CT, MA, NY, DE, NH, RI, ME, NJ, VT) have joined together in a Regional Greenhouse Gas Initiative (RGGI) for the formation of a regional “cap-and-trade” system for carbon dioxide emissions.  Other leadership initiatives being taken by states include formation of climate change action plans, renewable portfolio standards (RPS), renewable fuel standards (RFS) and vehicle greenhouse emissions standards.