Luther urged to join Chicago Climate Exchange
Date 10/6/2005 12:00 AM | Topic: NewsThe Chicago Climate Exchange (CCX) is the world's first - and North America's only - voluntary, legally binding rules-based greenhouse gas emission reduction and trading system.
Luther College has been invited to join CCX. If it does, it will be the first liberal arts college in the nation to do so.
Members of CCX are companies and other municipalities that release greenhouse gases and are taking conscientious steps to reduce those emissions.
Greenhouse gases form a blanket around the earth and lock in heat from the sun within the earth's atmosphere. As a result, global warming occurs when the layer of green house gases thickens. Climate models confirm that over the past 100 years the concentration of green house gases has been steadily increasing.
The severe consequences of global warming will be rising sea levels, more intense and frequent heat waves, increased numbers of droughts and wildfires and the rising likelihood of species extinction.
The 2005 Energy Bill that was approved earlier this year has initiated discussions about global warming among Luther students and elsewhere.
"In my opinion, this Energy Bill is a failure in regards to controlling global warming and also addressing many other key environmental issues," the coordinator of Luther's Environmental Concerns Organization (ECO), Joe Kelly ('07), said.
"One main example of how this bill failed us as a country is that it dropped a provision requiring utilities to generate 10 percent of their energy with renewable resources such as wind and solar by the year 2020."
CCX Members include Fortune 500 companies, various municipalities and major universities such as the University of Minnesota and the University of Iowa. Currently, CCX members in phase one are committed to reducing their greenhouse gas emissions by one percent per year over the four-year period of 2003-2006.
Luther College is considering joining during the second four-year phase of 2007-2010. This would require that Luther reduce its emissions by 1.5 percent per year.
An emissions baseline is set for each member based on their direct and indirect emissions of greenhouse gases. The baseline can be established in two ways: It can either be the average of annual emissions for the three-year period of 1998-2001, or a member's emissions from the year 2000. Luther is already aware of its average emissions for 1998-2001.
Students in a Paideia Capstone course on U.S. policy researched the information last spring. Associate Professor of Religion Jim Martin-Schramm, who co-taught the course, is hopeful that Luther will become a CCX member.
"We already know what our average emissions were for 1998-2001, but we need to compare that to the actual emissions in the year 2000," he stated. "My guess is that we will go with the 1998-2001 average since the year 2000 may not reflect normal winters and summers."
If Luther chooses to join CCX during phase two, it will commit itself to reducing its baseline greenhouse gas emissions by 6 percent by 2010. Recent investments in energy efficiency have already greatly reduced consumption. However, with the CFA addition in 2002, Luther's use of electricity increased by 9 percent in 2003. Therefore, in order to meet the 2010 CCX target, Luther would have to reduce electricity consumption by 15 percent.
"It's unfortunate that CCX doesn't use a more recent year for the baseline because Luther added the CFA to the campus in September 2002. Thus, in order to meet our 2010 CCX target, Luther would have to reduce our electricity consumption by 15 percent," said Martin-Schramm.
Jeff Beck, ('06) is uncertain about the terms under which Luther must meet its 2007 goal.
"Because of the additional CFA emissions, Luther's first year reduction goal will be around 10 percent. I'm concerned if that is possible. "
The expansion of the Union and the future construction of the Valders addition may also make it more difficult for Luther to meet its future reduction target.
CCX staff members are helping Luther predict current and future emissions rates based on our use of fuel oil and natural gas to heat the campus, as well as our use of electricity.
CCX Members who fall short of their emissions reduction target must buy credits from other CCX members. Currently, credits are traded within a range of $218 to $278 per 100 metric tons of greenhouse gases.
If a member reduces its emissions beyond the reduction target, it can sell its extra credits to other members who are in need of them. The member can also hold onto the credits for future use in case its emissions increase due to factors like new construction or severe weather.
An additional way to reduce emissions is to take part in project-based offsets. These include forested, agricultural and grassland management practices. Luther could profit from all of these offsets.
After a four-year period, membership is renewable. A member can assess its worth as a member and decide if it would be too difficult to meet future obligations.
There is an enrollment fee of $10,000, which clears the cost of an independent assessment of Luther's emissions profile. Also, there is an annual fee of $5,000 and small transaction fees that relate to the buying or selling of credits.
Martin-Schramm pointed out the benefits for Luther to join CCX.
"The primary benefit is that Luther would gain public recognition for environmental stewardship and leadership. Becoming a member would make Luther accountable for the claim that we strive to be an environmental leader. Hopefully, Luther would also become a less consumptive and more efficient institution."
Some people believe that becoming a member now is valuable for the future. It is anticipated that greenhouse gases will become regulated, and institutions will have to abide by federal regulations.
"The long-term benefit is that Luther would already be in a position to meet obligations in a cost-effective manner," said Martin-Schramm.
One of the vice presidents at CCX is a 1997 Luther graduate from Brazil. Last May, Rafael Marques visited Luther and spoke to the Paideia Capstone course that was taught by Professors Martin-Schramm and Dale Nimrod on U.S. Energy Policy. Marques also gave a presentation about Luther joining CCX to President Torgerson and Vice President for Administration Diane Tacke.
The decision regarding Luther joining the CCX would most likely have to be approved by the Board of Regents and would require the firm support of Torgerson and Vice President Diane Tacke.
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Kassie Petermann
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