Carbon Reduction Plans for Minnesota
During the 2007 Minnesota legislative session, the Legislature and Governor agreed to begin deep reductions in greenhouse gas emissions. The goals of the legislation are to reduce emissions 15% by 2015, 30% by 2025 and 80% by 2050.
The Midwest produces more greenhouse gases than many countries- as a region, it’s the number five emitter in the world, and it produces about one quarter of the greenhouse gases in the U.S. In late 2007, Governor Pawlenty and the governors from 5 other Midwestern states agreed to set up a carbon trading system aimed at reducing the region’s contribution to global climate change.
When the legislature convenes in February 2008, before it will be a climate change action plan supported by a large number of state environmental and conservation groups such as Clean Energy Minnesota and Minnesota Environmental Partnership (MEP).
Larry Lohmann, one of the founders of the Durban Group for Climate Justice, was in Rochester last week to present information about carbon trading, particularly Cap & Trade (C&T) policy similar to the ideas presented to our legislature.
There is little doubt that our dependency on fossil fuels and the need for drastic reductions in carbon emissions is leading us towards environmental destruction and impacting our climate including our air, oceans, trees, and all things living. The struggle to secure fossil fuel supplies aguably, has led us to war.
Awareness of these issues has dramatically increased over the last few years, as evidenced by grassroots citizen movements and in the building of community action plans. When Mr. Lohmann spoke last week, he raised many important issues and questions we must ask ourselves as our legislature explores the idea of C&T in Minnesota.
Is our government policy worthy of these grassroot movements? Do we need an international approach to great reductions in fossil fuel consumption?
The goal of emissions trading is an administrative (governmental) approach used to control pollution by setting an overall cap on carbon (greenhouse gas) emissions and providing economic incentives for achieving reductions in emissions of pollutants. Companies are allowed to buy and sell the carbon allowances or credits. This is done in 2 ways: cap & trade or offsets.
Consider the following example as presented by Mr. Lohmann last week: Company A is a large, well-funded company that emits X % more pollutants than what is allowed by the government. Company A most likely can afford the necessary upgrades necessary to emit less pollution, but has decided not to complete these upgrades at this time. Company B is a small, well-funded company that emits X % below the government limits. Company B has invested in upgrades to their business that has drastically reduced their emissions. Under the C&T system, Company A can purchase “carbon credits” from Company B that equals the amount of their (Company A) pollution that is over government limits. This allows them to continue with business as usual.
Sounds reasonable, doesn’t it? Company A will likely spend less money under the C&T system then it would cost to upgrade their business to comply with government pollution standards. Company A can then continue to invest instead in research and development, exploration, or whatever may be the case. Company B, with their newly acquired monies, can continue to invest in upgrades to their company in order to sell more carbon rights. Company B may also choose to invest in research for new technologies that will benefit us all by reducing carbon emissions even further.
On the other hand, some feel that C&T protects large companies as they can pay a smaller, more efficient company and keep on polluting. As long as total emissions stay the same, larger companies have no reason to change their practices. Regardless of your view, there are some serious questions that need to be asked as Minnesota ventures into the world of C&T. Larger questions surrounding this issue come to mind and need to be addressed.
How do we, as a society create a market system from something that belongs to all of us, the carbon cycle? How do governments establish fair market values on pollutants and carbon? The biggest question perhaps, remains: Will the price on C&T solve the problem and drastically reduce our fossil fuel usage?
The establishment of a C&T system in Minnesota is a serious issue. How can we as citizens mobilize to reduce our carbon footprint and create a more sustainable community? the footprint urges citizens to become involved by first, becoming educated on the basics of carbon reduction and C&T. Secondly, become involved in community groups. Contact lisa@the-footprint.net to find out how you can become involved.