City Signs On to Chicago Climate Exchange

Continuing its drive to cut greenhouse gas emissions, the city of Berkeley passed a resolution Tuesday to join the Chicago Climate Exchange, a commitment through which the city promises to cut municipal emissions by 1 percent every year from 2003-06.

The exchange, a stock market-like emissions-reduction initiative among private and public entities, is the latest in the city's efforts to remain at the forefront of environmental conservation. Berkeley has cut its emissions for several years, reducing emissions by 12 percent and 14 percent in 2003 and 2004, respectively.

Joining the exchange will back up the city's claims of emissions reduction, city officials said.

"What (the exchange) really provides to the city, number one, is a very accurate comparative analysis of our emissions," said Cisco DeVries, chief of staff to Mayor Tom Bates.

By joining the exchange, Berkeley places itself in a position to face penalties for not complying with its promise.

"We are putting our money where our mouth is," DeVries said. "We are pledging we are going to be a good environmental steward ... or we are going to have to pay."

If the city fails to meet its minimum reduction point of 1 percent, it will be forced to buy credit-at $2 per metric ton-from other cities which have exceeded their reduction requirements.

According to the proposal, however, the surplus Berkeley has already built up from the last two years of successful emissions reduction ensures that there is no risk of not meeting the 1 percent average, according to Housing Director Stephen Barton.

Berkeley has long pushed to be at the forefront of global warming issues through multiple mayors. Berkeley also participated in the first international conference on climate change in the early 1990s, said DeVries.

The city has made strides in efficient energy use, powering the city's municipal fleet with alternate fuels, using solar power at numerous city centers and exploring renewable energy sources, said Energy Officer Neal De Snoo.

Aside from creating a cleaner environment, joining the exchange also provides long-term economic benefits for Berkeley, officials said.

"It's a very good business decision," said Daniel Kammen, a professor at the Goldman School of Public Policy, who is also part of the Energy and Resources Group. "Berkeley is setting itself up for getting the best deals."

The dominant technology sector in the next few decades is slated to revolve around fuel efficiency and more environmentally friendly byproducts, Kammen said.

"The U.S. is making a disastrous decision (by not supporting environmental initiatives), and not just for the planet, but for the economy," Kammen said.

The exchange, an outgrowth of the energy initiative originally from Chicago, has now accumulated dozens of members ranging from Ford Motor Company to the city of Oakland.

Berkeley's contract with the exchange is slated to run through 2006, but city officials are considering extending the program through 2010.

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