MAYBE A SOLUTION: INTERNET CARBON TRADING

Market-based solutions are the only ones big enough to resolve Big Energy issues AND they are most easily manipulated by Big Players.

Trading Greenhouse Gases and Carbon on the Internet, Part 1
Andrew K. Burger, January 11, 2007 (E-Commerce Times)

- Formed in May 2000, the InterContinental Exchange capitalized on the rapid development and growth of large-scale electronic trading systems platforms…
- Focusing on commodities and energy contracts before the latest boom in prices has put the exchange in an enviable market position…
- a multibillion dollar global market has grown up around the issuance, verification and trading of CO2 (carbon dioxide) and GHG (greenhouse gas) emissions reduction credits…
- state governments across the U.S. are now moving with some urgency to introduce state and regional carbon and GHG emissions reduction credit and trading systems…
- the overall carbon market is now worth more than US$21.5 billion…

- The Chicago Climate Exchange (CCX) and the InterContinental Exchange (ICE) are already in the thick of it…
- ICE announced earlier this month that it expects to close on its planned merger with the New York Board of Trade in mid-January and launch side-by-side trading of the NYBOT's benchmark agricultural commodities on ICE's electronic trading platform for a Jan. 19 trade date.
- With the introduction of the ICE-ECX CFI futures contracts, the two exchanges have joined to provide what has become the predominant centralized marketplace for risk management and trading of EU Emissions Trading System (ETS) allowances…
- the CCX has moved quickly to establish a presence in Canada with the formation of The Montreal Exchange (MCeX), putting itself in excellent position to facilitate the needs of businesses and government as Canada moves forward with plans to adopt nationwide greenhouse gas (GHG) emissions reduction and renewable energy legislation…

- At first glance, the membership rosters at the CCX and ICE span what seems an odd and eclectic mix of trading counterparties. Members run the gamut from aerospace, automotive equipment, chemicals, electronics and semiconductor manufacturers…to electric power generators and technology providers…
- Retailers such as Safeway have joined the CCX, as have forest products and renewable energy companies…
- Environmental services organizations, municipalities and NGOs (non-governmental organizations) are also market participants…
- A range of specialized, boutique and diversified financial services companies have also joined the exchange as liquidity providers and offset aggregators…

- Wasatch Integrated Waste Management on Dec. 19 became the first organization in Utah to join the Chicago-based CCX…In 2002, Wasatch completed Utah's first landfill gas-to-energy project, as well as the first landfill gas-to-energy project completed under a DOE (Department of Energy) Biomass super ESPC (energy saving performance contracting) agreement in partnership with Hill Air Force Base…Wasatch captures methane, generated by waste decaying in the landfill, and either destroys the methane in a flare or ships it to HAFB, where it is used as fuel to run two generators that produce about 1.4 megawatts of electricity…
- Wasatch…can originate carbon reduction credits as it eliminates methane from the landfill. GHG emission reductions in excess of the 6 percent commitment and additional offsets can be sold to other CCX members on the CCX emissions trading platform. The company is now moving forward to complete its baseline and annual emission inventories and will then need to have the reductions verified…