BANKS WANT CAP-AND-TRADE

It is not surprising that the biggest financial interests in the world are anxious to create an international emissions market and draw the US into it. Such a market would likely be the biggest, richest, hottest commodity market in the world.

U.S. bankers to lobby developed countries on carbon-trading system
James Kanter, September 25, 2007 (International Herald Tribune)

WHO
Banks (Citigroup, Lehman Brothers, Morgan Stanley, BNP Paribas, Barclays Capital, Deutsche Bank, Credit Suisse, Climate Change Capital) and law firms (Baker & MacKenzie, DLA Piper); Imtiaz Ahmad, head of emissions trading, Morgan Stanley/London & vice president, International Carbon Investors and Services;
Gia Schneider, vice president for carbon markets, Credit Suisse;

The US portion of global emissions trading is so small it can only barely be seen in this graphic. (click to enlarge)

WHAT
A large contingent of international banks and financial institutions, through their lobbying group International Carbon Investors and Services, are urging the US and the other industrial nations to initiate an international emissions-trading program.

WHEN
- Seeing US politicians begin to debate different types of carbon trading plans, lobbyists International Carbon Investors and Services have begun trying to influence US choices.
- The next major world gathering to discuss and debate carbon trading will be in December.

WHERE
International Carbon Investors and Services represents worldwide banking interests. They will have a major lobbying presence at the December gathering in Bali, Indonesia, where many hope to draw the US into the action.

WHY
- The banks see that early failures in the EU trading program were caused by flaws that have solutions. Over-allocation of credits led to a severe price drop which will be corrected in the upcoming phase of the program by holding credits back for auction.

- On the other hand, the banking group is urging US political leaders to insure there is a top price on emissions credits so as to prevent the market from going too high.

NewEnergyNews will keep posting this graphic until the political leaders get it.

QUOTES
- Ahmad, International Carbon Investors and Services: "Where politicians opt to implement carbon constraints, then it should be cap-and-trade…"
- Schneider, International Carbon Investors and Services: "Price caps should play a very limited role in the system…Such policies could lead to market distortions and stymie efforts to raise enough capital to fund new energy technologies such as windmills and solar power…"