May 15, 2006
King County to become first county to join innovative market for reducing global warming pollution
King County will be the first county and the first major bus transit agency in the United States to join the Chicago Climate Exchange, under a proposal by King County Executive Ron Sims.
Making the four-year contractual commitment to reduce global warming pollution from county operations should not only reward the county for its aggressive clean energy and environmental management policies but also allow the county to influence expected federal rules governing carbon emission trading. County leadership intends to focus on shaping future market rules for climate-friendly public transit, methane capture from waste facilities, and carbon sequestration in landfills and forests.
"Experts agree that one of our most important economic tools to combat global warming pollution is the creation of binding carbon emissions markets," said Executive Sims. "I am impressed with the innovative spirit of the Chicago Climate Exchange and the important work they have accomplished in the development of voluntary markets in the United States and across the world.
"By joining the Chicago Carbon Exchange we expect to play a key role in determining how markets should operate, especially in the areas of transit and solid waste," Sims said. "We have to be innovative and forward-thinking if we are to prepare for and reduce the impacts of global warming on our future."
A 2002 Executive Order and a motion sponsored by King Councilmember Larry Phillips and former Councilmember Cynthia Sullivan that resulted in two comprehensive emission inventories have helped position the county to excel in this and future markets. Councilmember Phillips has led several environmental initiatives related to reducing global warming and has encouraged the County Council to collaborate with the Executive on related action plans.
"King County has demonstrated strong leadership in our commitment to clean air and sustainable living – from our world-class bus system to well-run wastewater and solid waste systems, and ambitious forest preservation practices," said Councilmember Phillips. "By stepping forward now to become the first county in the United States to make a binding commitment to reduce greenhouse gas emissions, King County once again has a chance to lead the way for climate control solutions."
Sims believes that such regional efforts will ultimately influence the federal government to create a binding federal market, similar to that in Europe.
The Chicago Climate Exchange is North America's only voluntary, legally binding pilot program for reducing and trading greenhouse gas emissions, and is the most active carbon exchange in the United States. It requires members to reduce carbon emissions and allows trading of carbon credits. King County's participation in the exchange can help expand the eligibility of credits that would reward and encourage the climate-friendly initiatives of the county and other local governments.
The Chicago Climate Exchange contract obligates King County to reduce emissions by six percent from a baseline of its year 2000 emissions. King County, which operates the largest transit agency and solid waste landfill in the region, and which has set best-practice standards for emissions inventories nationwide, is expected to meet or beat this target.
"I commend Ron for joining the Chicago Climate Exchange and for taking the position that King County and other organizations should budget for global warming pollution as a financial liability in their operations," said Dennis McLerran, Executive Director of the Puget Sound Clean Air Agency. "I also commend Ron for his commitment to joining the CCX as a way to influence the federal government to create a national carbon trading program, similar to those in the European Union."
The banking and insurance industries and leading investors have increasingly begun to calculate the financial risks of carbon emissions under a range of possible future regulations. Many businesses also recognize the need for a federal cap on carbon emissions, in order to ensure uniformity of carbon market rules and to provide a clear forecast for long-term business investments in the context of carbon markets.
Making sure that future market rules reward transit agencies for this type of expanded regional service is one of the most important reasons for joining the Climate Exchange said Sims.
"This is the time when carbon markets are maturing and the rules are being written. The victory goes to those playing the game," Executive Sims said. "In the world of carbon emissions trading, you can't win if you don't play. And you can't credibly affect future rules if you are not actually engaged in the existing market forums."
Over the past 15 years, King County has actively fostered the growth of a clean fuel economy and climate-friendly development. In 2002, the county joined the Cities for Climate Protection and the Executive created an action plan to reduce emissions of greenhouse gases and targeted air pollutants from its operations. This action plan coincided with:
- establishment of the Green Building program and Renewable Energy policy;
- development of a hydrogen fuel cell at one of the county's wastewater plants;
- purchase of 89,000 acres of development rights at Snoqualmie Forest;
- operation of regional transit with alternative fuels such as ultra-low sulfur diesel and biodiesel; and
- operation of the Cedar Hills landfill with maximum capture of methane.
These measures have worked in tandem with establishment and protection of the Urban Growth Area Boundary, as well as high-density development based around easy transit access, which preliminary data suggests could reduce global warming pollution from transportation emissions on a regional level.
"Ron Sims and King County deserve national attention for standing up to shape future climate policy in this country in a way that boosts our regional economy," said Gene Duvernoy, President of the Cascade Land Conservancy.
"Ron's proposal to join the exchange will help to ensure that our working forests and farmlands, under pressure today, are valued and protected for forestry, agriculture and recreation for generations to come," Duvernoy said. "This act of leadership illustrates what is best about our region and what's best about Ron Sims – innovative solutions to the tough problems of balancing economic development with the urgent need to protect our planet from the harmful effects of global warming. "
Recently Executive Sims issued a series of executive orders designed to position both the county and the region to thrive in a carbon-constrained future. These policies include:
- major additional investment in biofuel and renewable energy;
- incentives and strategies to reduce travel in single-occupancy vehicles and regional transportation emissions; and
- waste-to-energy projects that harness new resources from county operations.
Executive Sims has also called for a dramatic increase in regional bus service with his "Transit Now" proposal that will add 60,000 new passengers daily to Metro Transit buses.
Learn more about the Executive's other global warming initiatives and Transit Now proposals.