Carbon Trading: Enhancing Business Value through Carbon Reductions I
Michael E. Heintz, Porter, Wright, Morris & Arthur LLP, 41 S. High Street, Columbus, OH 43215
Companies can generate carbon reductions in many ways. They may do so when they shut down a facility, change a production process, enhance energy efficiency, install pollution controls, or take any number of other actions. Which of these activities can generate carbon reduction credits? How much are these credits worth? Where can they be traded? This presentation will answer these questions. It will describe the principal carbon trading programs at both the international and domestic levels. These include the Kyoto Flexibility Mechanisms, the European Union Emissions Trading Scheme, the Regional Greenhouse Gas Initiative and the Chicago Climate Exchange. It will explain how each of these initiatives works – how each evaluates carbon reductions, assigns “credit” for these decreases, and creates a market in which participants can trade these credits. Having laid this foundation, it will explain how individual companies – including members of the chemical industry – can engage in these new markets and obtain value from their carbon reductions.