TITLE

WHAT'S YOUR CARBON WORTH? ASK RICHARD SANDOR

AUTHOR(S)
Appelbaum, Alec
PUB. DATE
November 2004
SOURCE
Fast Company;Nov2004, Issue 88, p38
SOURCE TYPE
Periodical
DOC. TYPE
Article
ABSTRACT
This article features the Chicago Climate Exchange (CCX), a full-pledged commodities market whose roughly 60 volunteer members--including Ford, IBM, and the city of Chicago--trade rights to emit carbon. Each member pledges to reduce carbon output by 1% per year through 2006. If one wants to start a project that uses lots of energy--say, a new factory--it buys the right to emit the carbon involved from a counterpart. Trading pollution rights is a well-tested concept. The federal Environmental Protection Agency championed the 1990 Clean Air Act by letting companies trade the right to emit sulfur dioxide and nitrous oxide. But those markets, which Richard Sandor helped set up, involved a far smaller range of emissions--and took three years to happen. As of June 30, 2004, after nine months in business, CCX members had swapped more than 1 million tons--credit Sandor's meticulousness, optimism, and chutzpah. With a grant from Chicago's Joyce Foundation, Sandor recruited agricultural economists and engineers to develop the complex protocols, assigning responsibility for emissions based on an organization's scale and activities, among other variables. The rules of CCX on auditing and accounting for emissions-reduction projects help groups such as the World Resources Institute propagate global standards. They also let executives plug real numbers into spreadsheets.
ACCESSION #
14610296

 

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