Carbon Market News

Author: Meghan Schloat, Policy Manager, US Regulatory Affairs

House passess Waxman Markey Climate Bill

The House of Representatives approved landmark climate legislation in a close vote late Friday June 26^th.  The American Clean Energy and Security Act (ACES), spearheaded by Chairman Waxman of the House Energy and Commerce Committee and Chairman Markey of the House Subcommittee on Energy and Environment, was approved by a narrow margin of 219-212, with only 8 republicans voting for the legislation.  

The 1,200 page bill and 300 page “manager’s amendment” will impact almost every corner of the U.S. economy.  The climate bill would mandate that 15% of the nation’s electricity come from renewable sources such as wind and solar power by 2020, potentially expanding the market and profit potential for companies in those sectors. The bill’s overall goals are to reduce U.S. greenhouse gas emissions 17% from 2005 levels by 2020 and 83% in 2050.  

Just days before the final vote, House Democrats resolved the last major sticking points between farm state members and sponsors of the bill. Rep. Collin Peterson, Chairman of the House Committee on Agriculture, agreed to vote for the House climate bill and bring dozens of rural lawmakers with him only after Rep. Waxman (D-Calif.) agreed to make several concessions on issues relevant to farm state members.

 The next step for the bill will be action in the Senate, where Majority Leader Harry Reid (D-NV) has pledged a fall floor debate following markups in the Environment and Public Works Committee and several other panels.   

Senate begins hearings in preparation for Climate Bill debate

This week, Senate Democrats began climate debate with hearings and high-level talks aimed at passing a comprehensive bill that can be matched up with the American Clean Energy and Security Act, passed by the House in late June.

Environment and Public Works Chairwoman Barbara Boxer (D-Calif.) opened hearings today with four senior Obama administration officials — Energy Secretary Steven Chu, U.S. EPA Administrator Lisa Jackson, Agriculture Secretary Tom Vilsack and Interior Secretary Ken Salazar – testifying as witnesses.

Two other Senate committees will hold hearings later this week to discuss some particularly tricky issues associated with domestic climate legislation. Sen. Max Baucus’ (D-Mont.) Finance Committee will look at the interplay between climate legislation and international trade, and Sen. John Kerry’s (D-Mass.) Foreign Relations Committee will discuss the success of the European Union Emissions Trading Scheme (EU-ETS) while dealing with competition from developing countries.

Climate Action Reserve sanctions Mexican carbon offsets

The Climate Action Reserve, a California-based nonprofit that issues carbon credits, yesterday adopted standards that could make landfills and livestock projects in Mexico eligible as bankable offsets in the United States.  The organization says that farm and landfill projects validated through its protocols will live up to the same standards used by voluntary U.S. markets.

Adrián Fernández Bremauntz, president of the National Institute of Ecology in Mexico and a board member at CAR, said such projects could play “a very notable role” in the U.S. carbon market if and when Congress passes a cap-and-trade bill to regulate greenhouse gas emissions.

Reid pushes back deadline for committee action to September 28th

Senate Majority Leader Harry Reid has pushed back the deadline until Sept. 28 for the six committees working on a comprehensive climate change and energy bill. This is a small shift in the initial timeline to ensure that all committees have the time to examine relevant aspects of the legislation.

Originally, Reid wanted the Environment and Public Works Committee and other panels that deal with tax, agriculture, energy and foreign relation issues to have their work done by Sept. 18. But the sheer size of the legislation, combined with the difficult task of winning 60 votes on an issue that breaks both regional and party lines, convinced the Majority Leader to give the committees more time.

The larger goal of passing the legislation through the Senate in time for U.N. Conference of Parties this December in Copenhagen, Denmark still remains.

G-8 Update: Russia finds new targets unacceptable

The Group of Eight’s targets for developed countries to cut their greenhouse gas emissions is “unacceptable and likely unattainable” for Russia, said Arkady Dvorkovich, top economic aide to President Dmitry Medvedev. On July 8^th, the G-8 leaders called on a number of developed nations to reduce their emissions by 80 percent by 2050.

In response to this target Dvorkovich was quoted saying, “We won’t sacrifice economic growth for the sake of emission reduction.”

Dvorkovich would not reveal Russia’s target for emissions cuts, but said that calculations are currently being done.  The country’s targeted cuts range from 20 percent to 60 percent by 2050.

About EcoSecurities

EcoSecurities has spent the last 11 years focusing on climate change mitigation activities and is now one of the world’s leading organizations in the business of sourcing, developing and trading carbon offsets. EcoSecuriteis provides clients with carbon management services helping them to understand and deal with an increasingly carbon constrained world. For more information visit

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Posted on July 9, 2009 · in Carbon Market News, Global