THE BIG BUSINESS OF POLLUTED AIR*

  Edition-1

On a particular day in June 2010, it is 15.64 euros. This is the sum that RWE pays for the right to release 1 tonne of CO2 through the chimneys of Niederaussem.

       The idea of putting a price tag on CO2 originated from the USA. In Kyoto, President Bill Clinton made emissions trading the condition for his ratification of the climate protection agreement. The USA wanted to buy its way out of its CO2 liability. The rest of world agreed-reluctantly-but to no avail. To date, the USA has refused to implement the decisions sanctioned in Kyoto.  On the other hand, the Europeans, who were against the trade in pollution rights, have been operating the World’s largest CO2 market since 2005.

        Emissions trading are based on the assumption that it is irrelevant where exactly in the world pollution reduced; & on the belief that governments cannot bring about the reduction as efficiently as the corporate sector.

      In order to turn polluted industrial air into a tradable commodity, governments have established an account of CO2 certificates for every major polluter in Europe. Each certificate represents the right to release 1 tonne of CO2. In 2010, RWE received about 15 million certificates for Niederaussem. This only covers about half its emissions. When the account is empty, man must either have Niederaussem output reduced-or buy more certificates.

*By Malte Henk & Jurgen Schaefer