Kerry eyes lame duck climate fight.

07/23/10 Sen. John Kerry (D-Mass.) is suggesting a climate change bill could have better prospects in a lame-duck session. Kerry made the comments to Bloomberg as the Senate abandoned plans to move on climate change legislation before the August break. The decision is expected to prevent a vote on the matter this year, though Kerry is still offering hope. "I have to tell you, this is not dead. We are going to continue to work. It may well be that after the election - if that is what happens - I mean, we will continue to try over the next weeks, but if it is after the election, it may well be that some members are free and liberated and feeling that they can take a risk or do something. Or, you know, the whole political landscape may have changed in some way," Kerry said Thursday in an interview with Bloomberg Television's "Political Capital With Al Hunt" that will be broadcast this weekend. Kerry told the Bloomberg news service that he would continue seeking votes, and said the climate bill's prospects could improve after the midterm elections.

Democrats Look to 'Lame-Duck' Session to Pass Unpopular Bills.

With just 70 days remaining until the 2010 midterm elections, congressional Democrats appear to be preparing for the worst - the possible loss of their majorities in the U.S. House and the U.S. Senate. Regardless of the electoral outcome, the American people should also be preparing for the worst - the "lame-duck" session. The lame-duck session comes after an election and before newly-elected officials are sworn in. House Speaker Nancy Pelosi, D-Calf., and Senate Majority Leader Harry Reid, D-Nev., have signaled they will call a lame-duck session between Nov. 2 and Jan. 3. The defeat of the "No Lame-Duck Session" resolution, offered by Republican Study Chairman Tom Price of Georgia, confirmed their plan. Among the most significant bills deliberately not addressed prior to the General Election: "Cap and Trade" Bill: A June 28 article in The New York Times declared, "many expect the final energy or climate bill to be worked out during the lame-duck session between the November election and the start of the new Congress in January." Receiving pressure from liberal activists, White House Press Secretary Robert Gibbs confirmed that Congress could pass a modest energy bill this summer, and then add carbon taxes or regulations in a conference committee with the House during a lame-duck session.

Climate bill, other hot-button measures could resurface in lame-duck session.

Inside Energy 16-Aug-10 House Democrats beat back a Republican effort last week that would have blocked the chamber from holding a "lame-duck" session after the November elections for the purpose of considering a climate-change bill and other hot-button issues. The House voted 256-163 Tuesday to table, or kill, the measure, with six Democrats breaking party ranks to support the GOP resolution. Republicans on both sides of the Capitol have warned that Democrats could use a lame-duck session to pass legislation they feel is too controversial to bring up before the November 2 mid-term elections. Topping that list is the climate-change bill that Senate Majority Leader Harry Reid pulled the plug on in July because supporters could not find the 60 votes they needed to circumvent a Republican filibuster.

The Intercontinental Exchange (ICE) has announced the acquisition of The Climate Exchange.

The two entities have been partners since 2003. The Climate Exchange owns both the Chicago Climate Exchange (CCX), which operates North America's only cap-and-trade system for all six greenhouse gases, and the European Climate Exchange (ECX), the leading exchange operating in the European Union Emissions Trading Scheme (EU ETS). Angela Schwarz, president and chief operating officer of US carbon trader Element Markets, adds: "We were pleased to learn of this merger as we believe it will add much needed liquidity to the environmental credit market through the ability to clear transactions on ICE, one of the leading platforms in the energy sector. We think it strengthens the exchange position in the US, and with this increased strength, we would anticipate a marked increase in transactions."

Intercontinental Exchange Acquisition of CCX

Richard Sandor, the Chairman of CLE, said, 'a combination with ICE makes strategic sense,' and the current contracts in place that allow ICE to provide electronic trading platforms to some of CLE's markets demonstrates the opportunity for an easy business transition. The acquisition helps to confirm that carbon - like oil, milk, or steel - is a commodity, to be traded at a universal world price determined by interactions between supply and demand. This reinforcement of the carbon market's legitimacy also helps to increase carbon's liquidity, or price stability despite large market transactions.

Graham, Kerry, Lieberman share details of bipartisan climate and clean energy jobs bill with industry groups

March 17, 2010. E&E News PM (subs. req d) reported the following details of the bill, which leaked out from the Senators closed-door meeting with major industry groups they are courting : According to several sources in the meeting room, the bill calls for greenhouse gas curbs across multiple economic sectors, with a 2020 target of reducing emissions by 17 percent below 2005 levels and an 80 percent limit at mid-century. Power plant emissions would be regulated in 2012, with other major industrial sources being phased in starting in 2016. In a bow to industry demands, the senators  proposal would preempt U.S. EPA climate regulations under the Clean Air Act and halt dozens of state climate laws and regulations now on the books. Also, only facilities that release 25,000 tons per year of greenhouse gases must participate in the climate program. Additional layers of certainty for industry come via a hard price collar  that limits greenhouse gas allowances to between $10 and $30 per ton tagged to inflation, with an increase at a to-be-determined fixed rate  over time. The legislation would also set aside a strategic reserve  of 4 billion greenhouse gas credits that could be released into the market to help control price volatility fluctuations. UPDATE: Dr. Joseph Romm-Climate Progress www.climateprogress.org - The floor price was misreported in the press, I m told, which is good news because $10 is just too low. I d want to start at least $12 if not higher.

Carbon Trading May Dwarf That of Crude Oil

If carbon cap-and-trade becomes a reality, get ready for a potential multi-trillion dollar commodities market that could sprout up quickly, but not without growing pains. I m estimating carbon markets could be worth $2 trillion in transaction value  money changing hands  within five years of trading (starting),  says Bart Chilton, a Commodity Futures Trading Commission (CFTC) commissioner, who's also chairman of its energy and environmental markets advisory committee. That would make it the largest physically traded commodity in the US, surpassing even oil.  That could mean a carbon emissions market of 60 to 180 million contracts. By comparison, 135 million contracts of light sweet crude oil, 39 million contracts of natural gas and 53 million of all metals were traded on the Nymex in 2008. It s very exciting, the opportunities are really unbounded,  he says. We re going to see innovation and really fast and furious growth. The potential for this market is truly impressive.  US carbon markets are just getting started. The World Bank estimates the value of global carbon markets jumped from $110 million in 2002 to $126 billion in 2008, while a recent report by New Carbon Finance and Ecosystems Marketplace shows 123 million tons of carbon credits worth $705 million were traded here in 2008.

Time for a Price Collar on Carbon

As proposed, the House cap-and-trade system would set a quantity target on emissions and allow the market to determine the price of carbon  but with a price floor. Given that a key political vulnerability of the program is its economic effect on American households, sponsors of a Senate cap-and-trade bill could strengthen its prospects by imposing a price ceiling, in effect establishing a price collar. By preventing the policy from being either unexpectedly lax or unexpectedly stringent, a price collar protects both investors in green technologies and households and preserves strong incentives to abate. The price floor proposed in the House bill would start in 2012 at $10 per ton of carbon dioxide equivalent and rise by 5 percent annually. Our research suggests that adding a ceiling starting at $35 per ton and increasing both the floor and the ceiling by 4 percent per year would increase cumulative emissions over the period from 2010 to 2050 by about 6 billion metric tons, or about 4 percent relative to a policy without a price ceiling.

Proper cap-and-trade system to benefit agriculture - Biomass magazine

A study released by the University of Tennessee s Bio-based Energy Analysis Group indicated that net returns for U.S. agriculture would be positive, with the passage of a properly constructed national cap-and-trade regulatory system. Properly constructed  was defined in the study as allowing for multiple offset practices such as energy crop production, reduced soil tillage, methane capture, efficient fertilizer application, the planting of perennial grasses or trees on marginal land and keeping good farmland in crop production. Study results showed no major shifts in commodity cropland use are expected under a cap-and-trade system, and at the U.S. EPA projected carbon price of up to $27 per metric ton of carbon equivalent, no cropland is expected to be converted to forests and grassland. It did find, however, that if carbon prices reached $160 per ton that could lead to the conversion of as much as 60 million cropland acres, if no cap and trade or climate legislation is passed. The hypothesis of $160 per metric ton of carbon applies to the scenario in which EPA is in charge of regulating the agricultural sector without domestic offsets,  Ugarte said. p>

Carbon Trading Market? Build It And They Will Invest

Ahead-of-the-curve retail investors looking to play carbon as a commodity may want to bone up on the facts while they are waiting for the nascent market to scale up. Trying to understand the global carbon market opportunity is still a daunting task for individual investors, because there are very few sources for clear information,  says Richard Domaleski, CEO of World Energy Solutions, a firm building online carbon-credit auctioning platforms. Even the experts are learning as they go. At the end of the day, carbon is a commodity and an opaque one at that.  A look at the four-year-old compliance emissions market in Europe is a helpful guide. Among other things, it shows there are relatively few ways to play carbon as a commodity at this point. Barclays Capital launched the world's first carbon exchange-traded note, in July 2008, the iPath Global Carbon ETN which is linked to their own carbon emissions index, the Barclays Capital Global Carbon Index. At this point, it s still too soon for the index to include US entities, most notably, the only existing compliance market, the Regional Greenhouse Gas Initiative which regulates and auctions emissions from some northeastern US power plants and the Chicago Climate Exchange, where voluntary credits are bought and sold.

Point Carbon estimates carbon costs of yet-to-be-released Senate climate bill

By Jim Snyder - 04/15/10 04:38 PM ET Point Carbon, a market analysis firm, estimates that carbon prices will average around $31 a ton during the first phase of KGL climate legislation, which has yet to be released. The $31 a ton is the average estimated price between 2013 and 2020 and is only a few dollars more than carbon costs are expected to reach by 2020 under House passed climate legislation. How can Point Carbon forecast the costs of legislation that doesn't exist? The price reflects the presumed carbon market architecture from involved stakeholders and discussions with sources close to the bill,  the firm said in news release. Here's the firm's Web site. For context, the projected carbon price from the Senate climate legislation equates to an additional 27 cents a gallon for gasoline. The House climate bill, sponsored by Reps. Henry Waxman (D-Calif.) and Edward Markey (D-Mass.), would impose an economy-wide cap and trade program to cut greenhouse gas emissions. The KGL bill, so-called for its Senate authors John Kerry (D-Mass.), Lindsey Graham (R-S.C.) and Joseph Lieberman (I-Conn.), would create a cap-and-trade system for electric utilities and later for large manufacturers.

Bishop Urges carbon Fast for Lent

A British bishop and a climate change campaigner are urging people to go on a carbon fast this Lent - abstain from meat, eat by candlelight, and cut down on computer, mobile phone and iPod use. These steps, part of the "Tearfund campaign", can minimise each person's carbon footprint, Inspire Magazine reports. It quotes the Anglican Rt Rev Richard Chartres, the Bishop of London; and Joel Edwards, International Director of the group Micah Challenge. "It's the poorest people in developing countries, who have done the least to cause climate change, being hit hardest by its devastating consequences. It is all of our responsibility to help reverse this injustice," said Bishop Chartres. "The Carbon Fast's simple daily actions are not only fun, but an opportunity to demonstrate the love of God in a practical way while reducing your carbon emissions, and everyone can take part." Climate change is everybody's problem and every body's solution. For millions of the poorest people in the world climate change is not a matter of debate: it's a matter of livelihood, life and death."

US carbon bill a boon for world offsets market

The US cap and trade bill currently stands to deliver a huge stimulus to the clean energy and forest carbon sectors in North America and in the developing world. Whatever final form the scheme takes, it will produce the world s biggest single carbon market from 2012, eclipsing the EU ETS. And it s already clear generous international carbon offset provisions and linkages with other national emissions trading schemes will ensure the carbon market spreads well beyond US borders. This is particularly so for the emerging avoided deforestation, or REDD, sector. The American Clean Energy and Security Act, the Waxman-Markey bill, has passed through the US House of Representatives. It must yet clear its biggest hurdle, the Senate, to become law and if it were to do so more changes appear inevitable. But crucial to the bill s successful progress thus far has been the extensive access to offsets  domestic and international - it offers to US companies to meet their emissions reduction obligations under the scheme. The extended role of offsets looks set to stay. Carbon offsets are emissions reductions generated outside the covered sectors of an emissions trading scheme. Ability to buy offsets to help meet a reduction target is often cheaper for companies than reducing emissions in their own operations. The US Environmental Protection Agency has estimated that the carbon price in the proposed US scheme could be up to 90 per cent higher if it didn't allow emitters the option of buying large volumes of offsets from overseas.

Senators Boxer and Kerry release draft of Clean Energy Jobs and American Power Act  Similar to ACES, with few key differences

Leading news this month, Senators John Kerry and Barbara Boxer released the Senate s answer to the Waxman-Markey bill (the American Clean Energy and Security Act (ACES)) passed by the House of Representatives in late June. The draft, entitled the Clean Energy Jobs and American Power Act (CEJAPA), will now be referred to the Environment and Public Works committee, of which Boxer is the head. As expected, it mostly mirrors the Waxman-Markey bill, but differs in (among others) the following ways:
1) 2020 Commitment - While ACES commits to a 17% reduction off 2005 GHG emissions by 2020, the CEJAPA commits to a 20% reduction over the same time period.
2) Minimum Market Stability Reserve Price - Where ACES minimum reserve price is $28 in 2009 dollars, CEJAPA is $28 in 2005 dollars, resulting in a higher reserve kick-in.
3) Offset Type Approved - Like ACES, CEJAPA lists offset types the Administer must recognize but adds, importantly, offsets generated from coal mine methane, landfill gas and fugitive emissions from oil and natural gas systems.
4) International/Domestic - While ACES allowed for 1 billion each of international/domestic offsets each year, CEJAPA allows for 1.5 billion domestic offsets and 500 million international offsets each year.

China sees emission trading pilot in next economic plan

BEIJING (Reuters) - China plans to include a pilot emissions trading system in its five-year plan for economic development until 2015, the Environment Ministry said on Sunday, but declined to comment on whether it would cover carbon dioxide. China is now the world's top annual emitter, and President Hu Jintao pledged at the United Nations to take on a "carbon intensity" goal that would oblige it to cut the amount of carbon dioxide produced for each dollar of its economic output. Many carbon traders hope this could pave the way for a market like the one currently used in Europe, and have been rushing to secure a potentially lucrative foothold in China even though it is unclear how easy it will be to make money there. The Chicago Climate Exchange (CCX), owned by UK-based Climate Exchange Plc, has signed a deal to set up a Chinese emissions exchange, but has declined to say how much it will invest or when trading might start.

Voluntary carbon market doubles in 2008

The voluntary carbon market doubled in size in 2008 despite a decline in transaction activity toward year-end due to recession, the leading report on the sector has found. The State of the Voluntary Carbon Markets 2009 study, by Ecosystem Marketplace and New Carbon Finance, found 123 million tonnes (mt) of voluntary carbon emission reductions last year, up from 65 mt in 2007. By value, the trade in voluntary carbon offset credits reached $705 million, more than double the $331 million the year before. The voluntary carbon market covers a wide range of transactions worldwide where companies, organisations and individuals buy carbon credits by choice, not because of any regulation that requires them to do so. It is the market outside mandatory carbon trading schemes such as the EU ETS. Motivations for voluntary carbon offset purchases are varied and include:
1) a desire to offset one s own emissions
2) the green marketing value they offer a business
3) the expectation purchases will be recognised under a future mandatory scheme
4) for investment speculation

Surprisingly, the 2009 report found that investors buying carbon credits in the hope they can be on-sold at a profit became the biggest source of buyer demand last year, accounting for 35 per cent of purchases. Those choosing to offset their own emissions accounted for 31 per cent of purchases, down from 55 per cent.

Goldman Sachs, Blue Source and CE2 Carbon Capital Complete North America s Largest Carbon Offset Transaction

New York, NY, Salt Lake City, UT and San Diego, CA  The Goldman Sachs Group, Inc. (NYSE: GS), Blue Source, and CE2 Carbon Capital today announced a $12 million U.S. carbon offset transaction. This is the largest publicly announced U.S. offset transaction to date and signifies confidence in the role carbon offsets will play in a U.S. regulated carbon market. The transaction involves offsets originating from Blue Source s portfolio of emission reduction projects. The offsets are generated from U.S. based projects including forestry, landfill gas and coal mine methane. These projects meet the rigorous quality standards of the Climate Action Reserve and Voluntary Carbon Standard. Included in the transaction is the Alligator River Forestry Project in North Carolina, the first forestry project located outside the state of California to be listed by the Climate Action Reserve. 'We are pleased to be involved in this landmark transaction and drive activity within the U.S. carbon economy,' said Greg Spencer, President of Blue Source. 'This is a continuing signal both to offset purchasers and potential project owners that capital is moving, and there is a high degree of confidence that investment returns can be achieved today.'The transaction creates environmental and economic benefits as the U.S. works toward achieving emission reductions through state, regional and federal cap-andtrade programs.

B.C. joins Schwarzenegger's 'carbon credits' trading market

British Columbia's government announced Tuesday it will be the first Canadian province to join an emerging international system to fight global warming by creating a carbon trading market that lets polluters buy "carbon credits" from cleaner and greener companies.British Columbia's government announced Tuesday it will be the first Canadian province to join an emerging international system to fight global warming by creating a carbon trading market that lets polluters buy "carbon credits" from cleaner and greener companies. The province is joining five U.S. western states that in February formed a bloc, first proposed by California Gov. Arnold Schwarzenegger, that will set aggressive targets for greenhouse gas emissions in California, New Mexico, Oregon, Washington and Arizona. Schwarzenegger is hoping to enlist "four or five" other Canadian provinces to join the carbon-trading bloc -- now closing in on a population of 60 million people -- when he visits Canada in May, said Terry Tamminen, the governor's adviser on climate change.

The Carbon Cap: The Newest Form of Taxation

July 15, 2009 -If you're unfamiliar with the concept of a carbon cap, it's simple. It's a tax. The president wants to reduce per-capita U.S. carbon emissions to 14% below 2005 levels by 2020, and 83% by 2050. And he's promoting this as a good idea by suggesting that it will pour $646 billion into federal coffers between 2012 and 2019, through government auctions of the rights to emit greenhouse gases. Ever-savvy, the market isn't waiting. Although no cap is yet in place, carbon credits have already arrived. And companies are busily buying and selling in anticipation. In other words, some outfits are stocking up on purchased credits, against the day when they'll be required by law. Others are speculating that the value of those credits will go up once the federal cap is in place. And some are making a lot of money simply by selling carbon reductions they've already made. There's no secret key to why so many want a piece of this action. It's going to be a very, very big business. If European standards are applied to the U.S., we're talking about a quarter-trillion dollars of credit trading a year.

JPMorgan acquires Carbon Offset Firm ClimateCare

NEW YORK/LONDON (Reuters) - JPMorgan has acquired the carbon offsetting company ClimateCare, the U.S. investment bank said on Wednesday. A spokeswoman for the bank said, "ClimateCare will be integrated into JPMorgan's existing Environmental Markets Group." The bank said it made the acquisition through its investment bank and that its environmental markets group would initially operate under the JPMorgan and ClimateCare brand names.The terms of the transaction were not disclosed.

Chicago Climate Exchange Welcomes CFTC Consideration of Carbon Contract

CHICAGO, August 18, 2009 - Chicago Climate Exchange (CCX) today welcomed a decision announced this week by the Commodity Futures Trading Commission to consider whether the Carbon Financial Instrument (CFI) contract traded on CCX performs a Significant Price Discovery Function. 'We look forward to working with the CFTC as it considers this designation and continues to prepare for growth in emissions trading,' said CCX Chairman and founder Richard L. Sandor. 'We think this reflects the increasing maturity of the carbon market and we welcome the critically important function that regulation and transparency plays in new and emerging markets of all kinds'. Volumes for all CCFE-traded products are up 70 percent so far in 2009 from all of last year.

Merrill and ICF to offer carbon offset service

LONDON, April 22 (Reuters) - U.S. investment bank Merrill Lynch has partnered with consultants ICF International to offer a service to measure companies' carbon emissions and offset them, they said on Tuesday. Investment banks are moving into a growing, 40 billion euro ($63.36 billion) carbon market.

Enterprise launches carbon offset program

St. Louis Business Journal, October 30 - Enterprise Rent-A-Car, National Car Rental and Alamo Rent A Car announced Tuesday a customer carbon offset program by matching customer offset purchases dollar-for-dollar up to $1 million. During the reservation process, customers can choose to pay an extra $1.25 per rental that funds certified offset projects that work to remove carbon dioxide (CO2) from the atmosphere. The program will being in January at locations in the U.S. and Canada and will be extended by mid-2008 to Enterprises' European customers.

Expedia Corporate Travel Goes Carbon Neutral

LONDON, PARIS, MUNICH, and BELLEVUE, Wash., March 7 /PRNewswire/ -- Expedia Corporate Travel will be the first global corporate travel agency to roll out a carbon offset program to its corporate travel customers. Expedia Corporate Travel has partnered with TerraPass, the leading retailer of green house gas reduction projects, to offer environmentally-conscious businesses the ability to both calculate the amount of carbon dioxide their employees' business travel creates and buy the corresponding amount of carbon offsets to balance it.

Volkswagen To Offset Projected Emissions Of Cars

Volkswagen of America plans to offset the carbon emissions of projected consumer use. From September 1, 2007, until January 2, 2008, vehicles sold by Volkswagen will have carbon emissions offset for the first year of ownership.In addition, the Volkswagen site will show the carbon footprint calculation of vehicles alongside statistics on fuel efficiency, speed, and price, when they use the Build a VW feature, according to VW.

Dell to go 'carbon neutral' by late 2008

IDG News Service, September - Dell outlines ways in which company will balance its carbon emissions, including expanding its reforesting program and producing energy-efficient items Dell will neutralize its carbon emissions and become carbon neutral by the end of 2008, chairman and CEO Michael Dell announced Wednesday. Dell is the first major computer manufacturer to announce its intention to balance its carbon emissions with activities that reduce carbon in the atmosphere. "Companies have a responsibility to improve the environment", Dell said during a speech in Washington, D.C.

Television Production Going Carbon Neutral

"24," the Emmy award-winning series from Imagine and Twentieth Century Fox Television, became the first-ever carbon neutral television production this season. Through greener production practices, the show was able to reduce its season 7 carbon footprint by 43%. The remaining 1,239 tons of CO2e will be offset through the purchase of carbon credits that meet the Voluntary Carbon Standard (VCS) requirements and are retired through the Bank of New York Mellon. The World Resource Institute's (WRI) Greenhouse Gas Protocol serves as the foundation for the calculation methodologies used in the "24" footprint, and emissions factors were sourced from both the GHG Protocol and EPA Climate Leaders guidance.

REI Adventures Announces Carbon-Neutral Travel

Entire Greenhouse Gas Impact of Trips to be Offset at No Added Cost to Customers; Hailed as a First among U.S.-Based Adventure Travel Companies. Travelers to some of the world's most remarkable destinations for once-in-a-lifetime vacations with REI Adventures will be guaranteed to have a "greenÓ experience Ð whether traveling to the Alps or Antarctica, and all points in between. Through the company's new 100 percent carbon-neutral (also known as "climate-neutralÓ) offering announced today, outdoor enthusiasts will now be able to "greenÓ their travel Ð including the air travel to and from their destinations. EI Adventures expects to purchase more than 52,000 BEF Green Tags in the coming year, offsetting more than 36,000 tons of carbon dioxide. Carbon dioxide emissions from burning fossil fuels are the largest source of climate-altering greenhouse gas emissions. This amount equates to the annual CO2 emissions of approximately 6,200 average gas-powered cars, or powering nearly 5,000 typical U.S. homes for a year with 100 percent renewable energy. According to the U.S. Environmental Protection Agency's list of top renewable energy purchasers, today's announcement would place REI among the 20 largest purchasers nationally.

Dole Food Announces Carbon Neutral Project

WESTLAKE VILLAGE, CA: Dole Food Co. Inc. has just announced that Standard Fruit de Costa Rica, Dole's operating subsidiary in Costa Rica and Fondo Nacional de Financiamento Forestal (FONAFIFO), the National Forestry Financing Fund and an entity of the Ministry of Environment and Energy of Costa Rica, signed an agreement to work together on a project aimed at establishing a carbon neutral product supply chain for bananas and pineapples, from their production in Costa Rica to the markets in North America and Europe.