Earth Photo Compliments of NASA – Astrophysics Science Division and Google

Environmental Stewardship at Michigan State University

Big Ten and Friends Utilities BenchmarkingFY 2006-07

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Chicago Climate Exchangewww.chicagoclimatexchange.com

• The Chicago Climate Exchange (CCX) is North America’s greenhouse gas (GHG) emission registry, reduction and trading system for all six greenhouse gasses (GHG)– The six greenhouse gasses are: carbon dioxide, methane, nitrous oxide,

hydrofluorocarbons, perfluorocarbons and sulfur hexafluoride• CCX is a self-regulatory, rules-based exchange designed and

governed by CCX Members• By the end of Phase I (December 2006) all Members will have

reduced direct emissions 4% below a baseline period of 1998-2001• Phase II, which extends the CCX reduction program through 2010,

will require all Members to reduce GHG emissions 6% below baseline– MSU has joined the CCX at the beginning of Phase II and thus will work

toward the 6% reduction goal

CCX Committee Structure

• Executive Committee– The Executive Committee is made up of 7 members; the CEO,

the President, one Vice-Chairman of the Board of Directors that is selected by the Chairman of the Board and four Members of the Exchange

• Standing Committees of the Exchange – Environmental Compliance– Forestry– Membership – Offsets– Trading and Market Operations

Members – Partial List

• American Electric Power• Dow Corning• Dupont• Ford Motor Company• Motorola, Inc.• University of Iowa• University of Minnesota• University of Oklahoma• Michigan State University

CCX Pros/Cons

• Climate Exchange Membership Benefits to MSU:– Demonstrates that Michigan State University is a leader in

responsible environmental management– Reflects Michigan State University’s public commitment to

environmental stewardship– Prepares MSU for the future regulation of CO2 by providing a

framework and method for measurement & verification of greenhouse gas emissions

– Provides opportunities for MSU to partner with Michigan Agriculture to aggregate off set projects that are available in Michigan and provide CO2 credits such as methane offsets from digester projects; soil offsets from no till farming; forestry offsets from managed commercial forests; and offsets from electricity produced from renewable energy such a methane generators and wind generators, etc

– Provides incentive for the Campus community to conserve energy

CCX Pros/Cons•Opens opportunities for MSU researchers and graduate students to partner with the Chicago Climate Exchange membership regarding carbon sequestration measurement and verification projects from all perspectives-campus, off-campus properties, state, national and global•Provides opportunities for alternative fuel projects that will help reduce the growth of CO2 and open areas of research in the alternative fuel area on campus, such as the Anaerobic Digester project•Partner with the CCX in the development of an intellectual framework required for cost effective and valid greenhouse gas reduction•Work with the CCX membership to help inform the public debate on managing the risk of global climate change•CLIMATE EXCHANGE MEMBERSHIP CHALLENGES:•Increased pressure due to expectation that MSU will reduce CO2 emissions; possible backlash if MSU is purchasing credits rather than reducing energy consumption if the public is not fully educated on the total greenhouse gases emissions approach•Market value/cost of carbon credits will fluctuate