Your fingers on the pulse of future markets

Despite the lack of joint federal policies and measures with regard to climate policy in the United States, there are several activities at state-level. The largest joint multi-state approach is the Regional Greenhouse Gas Initiative, or RGGI, undertaken by Northeastern and Mid-Atlantic states. The cap-and-trade programmes with a market-based emissions trading system is supposed to start in 2009 for power producers in the region. In the future, reductions from projects outside of the power sector (offsets) are supposed to be allowed for compliance as well.

 

Several states are in different stages of the political decision-making process concerning the establishment of emissions trading systems. California, for example, is planning to start its cap-and-trade-programme for utilities in 2012. Recently, numerous proposals for cap-and-trade programmes at the federal level have been introduced to the senate and will be dealt with.

 

Despite having no mandatory framework for emission reduction efforts, the only exchange floor for voluntary emission reduction certificates is the Chicago Climate Exchange. There, offset credits generated from projects in the US, Canada, China, Brazil, Mexico or Costa Rica focusing primarily on landfill and agricultural methane destruction or carbon sequestration in soils or forest-based biomass are traded.

 

These examples illustrate the willingness and effort made to set up cap-and-trade-systems in the United States, whether at the state-level or, potentially, nationwide. The urge to develop comprehensive programmes for efficient emission reductions will increase alongside the EU system and the gain in momentum of trading under the Kyoto Protocol. The legislative senate proposals for federal cap-and-trade-systems particularly bear obvious resemblances to the European system and the Kyoto market.

 

Canada has also shown commitment to introducing a Large-Final-Emitters scheme in recent years. Perspectives together with EcoRessources, Canada, conducted a study on allocation and energy efficiency indicators in this context in 2005. While the implementation timeline is not set, major elements of preparation have already been worked on.

 

Because of this potential, Perspectives closely follows the processes in North America. The vast experience we gained from the implementation of the European ETS and its connection to the Kyoto mechanisms enables us to observe and evaluate the progress thoroughly. The sound background in emissions trading markets we possess will allow us to successfully engage in this nascent market and meet its demands with tailor-made services.

 

 

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