Vattenfall AB, Alcan Inc., Duke Energy Corporation, International Emissions Trading Association (IETA) promoting evolution of global carbon tradingadmin
Vattenfall AB, Alcan Inc., Duke Energy Corporation and the International Emissions Trading Association (IETA) will work with other leading industries and financial institutions to accelerate the evolution of carbon trading as one of the key components to addressing climate change. This cooperation was announced today at a press conference at the World Economic Forum’s annual meeting, where the theme of climate change has been heavily discussed.
“Putting the right price on greenhouse gas (GHG) emissions is key to combating climate change,” said Lars G. Josefsson, President and Chief Executive Officer of the Swedish power company Vattenfall AB. “This is best done by establishing a global emissions trading system which will safeguard that abatement measures will be carried out where they are least costly. As we create a scarcity of emission rights, market forces will unfold and accelerate the breakthrough of new low-emission technologies.”
In January, Vattenfall AB presented its “Global Climate Impact Abatement Map”, an international survey investigating the economics of curbing climate change (https://www.vattenfall.com/climatemap).
Recent developments in other jurisdictions, such as California and the recently announced USCAP initiative by business leaders calling for a cap-and-trade regime in the U.S.A, is a clear signal that business on both sides of the Atlantic is looking for increased regulatory clarity in their strategic decisions.
“Expanding the GHG market into a global market will ensure that climate change is being addressed effectively, efficiently and takes advantage of business innovation and entrepreneurship, as well as produce a more liquid and competitive market, with one global price for carbon,” said Daniel Gagnier, Senior Vice President, Corporate and External Affairs, Alcan Inc.
“There is no ‘silver bullet’ for utilities to effectively address climate change,” said Jim Rogers, Chairman, President and Chief Executive Officer, Duke Energy. “We need to drive advancements on all fronts – energy efficiency, renewable energy and advanced clean coal, natural gas and nuclear plants – as we plan to meet our customers’ growing demand for electricity over the next ten years and beyond. We are the nation’s third largest coal generator, fourth largest nuclear generator and second largest in hydroelectric capacity and are pleased to be active participants in US-CAP. We look forward to working with the U.S. Congress and others on federal climate change legislation and convinced that the sooner we act the better it will be for our environment, customers and the economy,” he added.
Through the European Union Emissions Trading Scheme (EU ETS) and the project mechanisms of the Kyoto Protocol, Clean Development Mechanism (CDM) and Joint Implementation (JI), there is currently a price for carbon, which allows companies that have regulatory obligations in Europe, to make everyday business decisions. At the same time, a price on the tonne of carbon reductions has catalyzed interest in developing countries, in projects that address long time issues, now being addressed for the first time, such as waste management.
“A global carbon price is what business needs to make informed decisions and we are moving rapidly in that direction. We will learn more as we try it, we will make corrections, but there is no going back,” concluded Andrei Marcu, President and Chief Executive Officer, IETA.
Vattenfall AB, the largest generator of heat in Europe and the fourth biggest producer of electricity, generates, distributes, sells and trades electricity and heat. Vattenfall’s mission is to enhance its customers’ competitiveness, environment and quality of life through efficient energy solutions and world-class service.
Alcan Inc. (NYSE, TSX: AL – News News) is a leading global materials company, delivering high quality products and services worldwide. With world-class technology and operations in bauxite mining, alumina processing, primary metal smelting, power generation, aluminum fabrication, engineered solutions as well as flexible and specialty packaging today’s Alcan is well positioned to meet and exceed its customers’ needs. Alcan is represented by 65,000 employees in 61 countries and regions, and posted revenues of US$20.3 billion in 2005. The Company has featured on the Dow Jones Sustainability World Index consecutively since 2003. For more information, please visit: www.alcan.com.
Duke Energy is a leading energy company focused on electric power and gas distribution operations in the Americas. Duke Energy’s purpose is to create superior and sustainable value for its customers, employees, communities and investors through the production, delivery and sale of energy and energy services, and is committed to health, safety, the environment and its communities. Duke Energy works to achieve superior business results, stretch its capabilities and foster win-win relationships. Headquartered in Charlotte, N.C., Duke Energy is a Fortune 500 company traded on the New York Stock Exchange under the symbol DUK.
The International Emissions Trading Association (IETA) is a non-profit organization created in June 1999 to establish a functional international framework for trading GHG emissions. Our members include leading international companies from across the carbon trading cycle. They seek to develop an emissions trading regime that results in real and verifiable GHG emission reductions, balancing economic efficiency with environmental integrity and social equity. As of January 2007, the IETA comprises 145 international companies from OECD and non-OECD countries. IETA has formed several partnerships such as with the World Bank and Eurelectric.
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Source: ALCAN – EN