Put a Cap on It

Cap-and-Trade
Cap-and-Trade policies have become common as a means to regulate carbon emmissions in many nations

In my first blog post, I wrote an overview of the discussions held at the Copenhagen Summit, a meeting held to determine the course of action of the world’s nations in regards to increases in carbon emissions. As the blog has continued we have examined multiple cases of environmental foreign policy, and it is important to keep these differing policies in mind when trying to meet individual nation’s proposed CO2 reductions. Of these proposed courses, carbon trading shows the most promise.cap-and-trade-budget-defecit

As we move further into 2010, it is important not to overlook the prospects that surround carbon trading, also know as cap-and-trade. The fundamental principle surrounding carbon trading is the implementation of economic incentives for reducing carbon emissions, ultimately helping lessen pollution. “Under carbon trading, companies exceeding a “cap” on their emissions must purchase additional permits to pollute more. Companies that pollute less can “trade” or sell their surplus permits.” (Kanter)

The idea of cap and trade emerged in the late 1960s, however, it was not until the last twenty years that an idea became a viable policy.

  • 1990s: “China begins to experiment with a cap-and-trade system to cut down on sulfur emissions from power plants.”
  • 2000: “Shell begins a voluntary cap-and-trade program…Because the company has a broad international reach, the concept of cap and trade begins to spread across the world.”

If cap and trade policies are to be successful in the world today, it is important that the policy is carefully constructed and strictly adhered to. In the aftermath of the Copenhagen Summit, global superpowers, such as the United States, must be able to commit to such a policy to set an example for both developed and non developed countries. If such measures are taken, nations can both generate revenue, as well as reduce their impact on the pollution of our planet.

Evaluation of carbon trading: Carbon Trading Podcast

Carbon Emissions on the Shoulders of Others?

Contrast between the environment and pollution in Augusta, Ga
Contrast between the environment and pollution in Augusta, Ga

Where do a country’s carbon emissions come from? The most logical inclination would be that a country’s measured carbon emissions originate solely in the geographical confines of that nation; however, a recent study at the Carnegie Institution has found evidence to the contrary. The research done by the scientists at Carnegie indicates that over a third of carbon emissions of developed countries is actually emitted in less developed countries such as India and China.

This map depicts the 'outsourcing' of carbon emissions in different countries
This map depicts the 'outsourcing' of carbon emissions in different countries

In the case of the United States, the study found that, “per person, about 2.5 tons of carbon dioxide are consumed in the U.S. but produced somewhere else.” (Carnegie) With the recent promises made by the U.S. and the other nations that partook in the Copenhagen Accord, it is important to consider this ‘outsourcing’ when formulating and implementing environmental policy as opposed to referencing solely domestic emissions.

The data was derived from tracking commonly used products in 57 industry sectors across 113 countries. Researcher and lead author Steven Davis better described the ‘outsourcing’ phenomenon as being “just like the electricity that you use in your home probably causes CO2 emissions at a coal-burning power plant somewhere else.”

As conscientious citizens of the planet, it is important to understand how our actions effect the environment in which we live. When determining your own carbon footprint, it is important to keep in mind that the choices you make and the products and services that you consume can all have a significant impact on carbon emissions, both in and out of the nation’s borders.

Copenhagen Summit

Outside site of Copenhagen Climate Conference
Outside site of Copenhagen Climate Conference

As climate change becomes an increasingly hot topic, the collective actions and decisions of the planet’s nations becomes crucial in the regards to reducing greenhouse gas emissions. The UN Climate Change Conference 2009, also known as the Copenhagen Summit, is the most recent in a long list of climate related conferences.

  • The conference was held in Copenhagen, Denmark  in December of 2009
  • Included leaders from 193 nations
  • Individual nations determined their proposed emission cuts by the 2020
  • Failed to ratify a unified proposal to lower greenhouse gas emissions

Despite the individual promises made by the many nations whom were in attendance, the conference failed to construct an internationally binding deal that would assure the combined effort of nations to address the impending climate issue with any real conviction. The president of Friends of the Earth U.S., Erich Pica, called the accord “a sham agreement.” This failure is reminiscent of previous climate conference outcomes, such as the Kyoto Protocol, and it is evident that a distrust between nations led to the lack of power behind the Copenhagen Accord. The two largest emitters of greenhouse pollutants, the United States and the People’s Republic of China, both failed to come to terms on monitoring greenhouse emissions without assurances by the other that the accord would be respected.

If the world hopes to combat the many obstacles they face in reducing greenhouse gas emissions, it is important that there are not only incentives, but also strict and enforced penalties that occur in the breaking of the set guidelines. While the efforts of individual nations is commendable, for a full effect, the effort must be global.

Climate Change Policy Has Roadblocks in Washington

Clinton COP15


As the Copenhagen Summit drew to a close, U.S. Secretary of State Hillary Clinton made a surprising announcement: the United States would raise $100 billon in annual aid for developing countries by 2020, and in return they “open their carbon-accounting book.” There was only one problem with this plan– Congress had not signed off on this promise.  The U.S. needs the support of Congress for policy to be put in place to see the pledge through, and Clinton’s remarks were immediately met with opposition back in D.C.  Now you may be wondering (along with your Congressmen) who will pay this $100 billion.  Here is where this money could come from:

  • Offset projects– projects, such as planting trees, that help to reduce carbon in the atmosphere
    • In a cap and trade program, offsets could help companies meet emissions requirements
    • The European Union already uses such a system
  • Some taxes

This week, talks of the 2011 budget were abuzz at Capitol Hill.  Among those discussions was environmental policy.  Some of the things Obama is calling for in his budget are:

  • Money for renewable energy research– solar, wind, and geothermal
  • Expanding nuclear power
  • Make cuts in tax breaks for large fossil fuel companies

Environmental policy is something that Americans will be hearing about more and more as our administration, along with leaders from around the world, work to improve our world.

A Review of the Copenhagen Summit

I want to start this blog with a review of the 2009 UN Climate Change Conference, or known commonly as the Copenhagen Summit.  This summit is significant to the topic of U.S. foreign policy in regards to the environment and climate change, because it is the latest attempt to bring many nations together to reduce greenhouse gas emissions.  Here is a some fast facts about the Summit:

  • Leaders from 193 nations around the world met in December 2009
  • Individual nations made commitments to lower their own impact global warming
  • Did not make a binding international treaty to lower environmental impact– failing to meet a goal of reaching such an agreement by 2010
  • Failed to name strict goals for lowering greenhouse gas emissions
  • Obama said that of the Summit: “We’ve come a long way but we have much further to go.”
  • EU Commission President Jose Manuel Barroso said the agreements fell “far short of our expectations”

Here is a slideshow of images from the Summit.

This information should be helpful as we continue to look at the relationship between the U.S. and the European Union in regards to climate change.

Source:

New York Times with Google

Photos:

Poster; World LeadersPlenaryObama; Prince CharlesSarkozy; Protests; Comic