Twenty years ago, on this day, January 16 2003, a “milestone” was reached. Oh yes.
CHICAGO, IL – Efforts to develop market-based solutions to global warming reach a milestone today as leading U.S. and international companies and the City of Chicago announce they will be the Founding Members of Chicago Climate Exchange (CCX®), a voluntary cap-and-trade program for reducing and trading greenhouse gas emissions. In an unprecedented voluntary action, these entities have made a legally binding commitment to reduce their emissions of greenhouse gases by four percent below the average of their 1998-2001 baseline by 2006, the last year of the pilot program.
Anon. 2003. Chicago Climate Exchange Names Founding Members. Business Wire, 16 January.
The amount of carbon dioxide in the air was roughly 375.5ppm. As of 2023 it is 419.
The context was that a bunch of people thought – or chose to pretend they thought – that we could trade our way out of trouble, and that those who were early and/or quick could make a killing, and be doing well by doing good.
Carbon trading as a substitute for actual action… Because, you know, it would be cheaper that way…
What I think we can learn from this
That trading schemes are going to cause a feeding frenzy for banks and legal consultancies, and keen-to-burnish-image customer-facing businesses. Smart people take a breath and try to separate the hype and froth from what is actually being proposed.
What happened next
Turns out it didn’t work.
“CCX ceased trading carbon credits at the end of 2010 due to inactivity in the U.S. carbon markets,” (wikipedia)
What do you think? Does this pass the ‘so what?’ threshold? Have I got facts wrong? Interpretation wrong? Do comment on this post.