Carbon Trading Conference Report by Guest Blogger Greeninmiami. Geniusofdespair

I previously asked the Miami Herald, on January 19th, Where is the article on Carbon Trading? There was a conference in Coral Gables but there was never was an article about it but "Praise the Lord!" an alert reader sent us a report on the conference. You would think that since "Hedge fund billionaire Paul Tudor Jones has partnered with several big Wall Street firms and The New York Mercantile Exchange to form a new electronic venue for trading carbon greenhouse gases and other emissions" (according to the New York Post), that the Herald might have been on the cutting edge and found the conference newsworthy. Well I thought it newsworthy and so did our guest blogger. Here is Greeninmiami's report:

A recent conference held January 18th, in Miami, Emerging Opportunities In Carbon Markets, was very well attended and had excellent speakers. There were not many local companies represented from what I could tell, but there were quite a few from our university crowd. Best known would be a colleague, Dr. Jerry Brown from FIU, who has just finished a new book about energy issues .

The following points were made during the two-day conference that may be of interest:

General points:

· Deforestation causes 25% of global GHG emissions
· 30% of energy is lost from transformers during electricity transmission so there is much to be gained by focusing on conservation and increasing energy efficiency; most companies and politicians don’t like to focus on energy conservation because it is not “glamorous” and many people think the word “conservation” is code for “doing without” which is not yet an acceptable paradigm in the US.
· Carbon legislation will not pass this year (unless Congressman Dingell wants it to – according to a speaker at the conference, Dingell is THE key player with regard to this decision. His website has several articles/postings related to the issue at the very top of his home page: http://www.house.gov/dingell/ )
· Still no decision at federal level as to whether US will have regulations based on carbon tax or on cap and trade. Congressman Dingell was looking at carbon tax but now seems to be leaning toward cap and trade. The State of Florida is advocating cap and trade. FPL is advocating for carbon tax.
· Republican party does not have any legislative proposals related to mandatory GHG reductions to offer as an alternative to the myriad proposals crafted by Democratic party representatives.
· Difference between cap and trade regulations and GHG/carbon tax strategy (Google “cap and trade versus carbon tax” and you will find plenty of additional info.)
• GHG Cap and Trade – caps the quantity or amount of GHG emissions; guarantees emissions volume; seen as harder to implement as will require special legislation; some also perceive it as more vulnerable to corruption.
• GHG/Carbon Tax/Fee – sets a tax or cost for GHG emissions; guarantees a price certainty; preferred by many prominent economists and some environmental scientists; perceived as easier to implement because the tax is imposed on a smaller number of entities (energy producers, although they will pass on the cost to consumers), can be initiated right away, and does not involve complex trading.


Specific points provided by local participant, FPL.
(as per representatives Chris Bennett and Christopher Chapel with FPL group)

· FPL has made the largest commitment to renewable energy (e.g. wind, solar, hydrogen) of any US energy company.
· FPL is the cleanest electric company in the US. “Everything we do takes into account the environment.”
· FPL is the 3rd largest utility in the US with an A credit rating.
· FPL is a member of United States Climate Action Partnership.
· The State of Florida is considering requiring a renewable energy portfolio standard.
· FPL needs nuclear expansion because meeting electrical demand will require more than renewables.
· The new nuclear facilities being proposed will only be sufficient to handle non-peak electricity demand. Additional electricity generating plants in the area will be needed to provide peak supply.
· Wind technology has issues with intermittent supply. Both wind and solar development require land acquisition, which brings with it many logistical constraints.
· FPL is a proponent of a carbon tax (otherwise known as a carbon fee).

Thank you very much Greeninmiami. Much appreciated.