FIRST INTERNATIONAL CAP-AND-TRADE LAUNCHES

A purely symbolic gesture – symbolizing foresight, wisdom and caring for what this generation leaves the next.

Brown, Schwarzenegger, Spitzer, Corzine and Barroso have all displayed leadership in combating climate change. The Bush administration's record is one of denying climate change, delaying action against it and impeding the growth of New Energy.

Has the EU system reversed climate change yet? Not a good question. Here's the question: How much worse would climate change indicators now be if the Europeans and Japanese had done what the US did?

NewEnergyNews believes ICAP is a bridge to global action.

Countries launch carbon trading market
Barry Hatton, October 29, 2007 (AP via Yahoo News)

WHO
British Prime Minister Gordon Brown, California Gov. Arnold Schwarzenegger, New York Gov. Eliot Spitzer, New Jersey Governor Jon Corzine, European Commission President Jose Manuel Barroso

Every complaint opponents have about the volatility of the EU cap-and-trade system is valid -- in the 2005 - 2007 period. But going forward it is clearly smoothing out. (click to enlarge)

WHAT
The International Carbon Action Partnership (ICAP) is an international partnership hoping to lay the groundwork for a worldwide cap-and-trade system.

WHEN
ICAP was ceremonially finalized October 29.

WHERE
ICAP aims to be worldwide but presently includes the EU, California, New York and New Jersey, Canada, Norway and New Zealand.

WHY
- Cap-and-trade is the system deemed the most politically obtainable way control greenhouse gas (GHG) emissions. Permits to emit GHGs would be issued or auctioned to business and industry and traded according to the need or efficiency of individual entities. The permits would become commodities and would be traded in a worldwide commodities market.
- London is the center of the multibillion dollar EU ETS system in which emissions permits are traded.
- The Bush administration will not join any trading scheme because it claims that would retard economic growth. Subscribers to ICAP like Schwarzenegger do not think it would.
Spitzer suggested President Bush’s administration does not fully understand the importance of cutting emissions. Corzine called the EU ETS a role model for ICAP.

Trading last week would make the NYMEX envious. They are getting the kinks out. Phase 2 will be better and the US system will be better for their mistakes. (click to enlarge)

QUOTES
- British Prime Minister Gordon Brown: “[ICAP] is a significant step forward…fundamental…[to reversing climate change]…By working together we can make our shared vision of a global carbon market a reality…"
- California Gov. Arnold Schwarzenegger: “[ICAP will] provide more incentives for clean-tech investment and economic growth while not letting polluters off the hook…Just because you don't see Washington leading on this issue don't assume that America is shirking its responsibilities…"
New York Gov. Eliot Spitzer: “[The winner of the 2008 presidential election will] fully understand the import of the issue."
- European Commission President Jose Manuel Barroso: "Putting a price on carbon is the vital 'pull factor' needed to ensure a healthy market for clean technologies. It's a major driver for innovation, for the creation of markets, and for future activity…"