CARBON TRADING

UNCERTAINTY, TRADING GAINS

Mixed signals from carbon markets’ latest front, show surprising news. Despite fresh disappointments from the COP15 summit talks and despite a huge uncertainty over the ongoing US climate bill deliberations, trading volumes in the European Climate Exchange (ECX) and the Chicago Climate Futures Exchange (CCFE) reported better than expected gains. Specifically, they report emission trading volumes increasing 82% to 5.1 billion tons, while the CCFE average daily volume increased by 183% to 5,406 contracts in 2009 from 1,907 contracts in 2008. Better than expected results came in a year of great financial, economic and political turmoil.

COP15 COPS OUT IN COPENHAGEN?

In December of 2008, the failure of COP15 in Copenhagen to forge international binding commitments to reduce carbon emissions depressed the price of carbon credits in the midst of a global recession. However, carbon market experts said the political outlook was now looking brighter as a result of (non-US spearheaded) initiatives by China and India to turn the political momentum wheel by announcing post-Copenhagen reduction targets. Continuing discussions within the EU for an anticipated 30% cut by 2020 and a move to 100% auctioning in 2011, clearly show significant long-term growth potential.

QUO VADIS PHILIPPINES?

What opportunities do these trends signify for the Philippines? Is it time to pursue on our own a local agenda of climate change action? Do we have time to wait for international agreements to be painstakingly negotiated over many years, while merely crossing our fingers and hoping that commitments will be delivered by other governments on the targets they’ve signed up to?
We cannot significantly reduce emissions at their bulk sources now, but we can take action locally to boldly build the alternatives, address emission sources within our boundaries, and create such strong national movements that other players are led to follow suit. Perhaps, the most important outcome from the Copenhagen talks will take place beyond the conference itself. It will take place at the local communities-of-interest level, where the world’s climate initiatives will come together as never before, to strategize and build relationships of solidarity.

THINKING GLOBAL, ACTING LOCAL

It must take place in cities across the world as hundreds of thousands mobilize in hope, refuse to be let down by their leaders, and radicalize the process of “learning by doing.” Many more high-profile talks similar to COP15 are likely to take place again in the future, but we should not trust and wait on them to deliver genuine action on climate change. When such efforts fall short, it is time for the rest of us to take over. When they say “cap and trade” – we simply say “REDUCE”.

Behnido Y. Calida Jun 12, 2010
From: EDEN 2 page 128