Oakland Joins Climate Exchange

On April 22, Earth Day, the city of Oakland announced it was joining the Chicago Climate Exchange (CCX), a market-driven network of cities and companies working to reduce climate-changing greenhouse gas emissions. Oakland is the first city in California to join the CCX and only the second city in the U.S., after Chicago.

According to Oakland Vice Mayor Jane Brunner’s Report, “Authorizing the Oakland City Administrator to Establish Membership in the Chicago Climate Exchange,” Oakland produces approximately 40,000 metric tons of greenhouse gasses per year. In joining the CCX, the city of Oakland agrees to pay a $1,000 annual membership fee and pledges to reduce those emissions by 1 percent each year, in accordance with their legally binding contract with the CCX.

The city of Oakland has long been working towards becoming a greener city. Since Oakland has consistently reduced its’ emissions since 1998, joining the CCX means they will now be able to profit from those environmental efforts. Over four years the city stands to earn up to $10,000 by selling its’ excess shares.

Though the CCX may reduce emissions in some cases, it also justifies excess pollution by making it a commodity to be bought and sold rather than a dangerous pollutant. The U.S. has refused to ratify the Kyoto Protocol, and has no emissions standards. Regardless, companies and even cities are scrambling to reduce emissions and trade carbon, improve their image, and profit at the same time.

General Electric recently pledged $1.5 billion towards becoming ‘greener’, and let the world know with an 8-page advertisement in The New York Times. When asked why GE was making such a move, Chief Executive Jeffrey Immelt told the London Telegraph, "We plan to make money doing it. Increasingly for business, 'green' is green. We're at a tipping point where energy efficiency and emission reductions equal profitability." Oakland is making an easy profit from joining the CCX. Hopefully, their example will inspire other cities and businesses to cut pollution as well, even if they are driven by money rather than goodwill.

Vice Mayor Brunner believes, “The CCX demonstrates that a cross section of U.S. industry and local governments can reach an agreement to reduce greenhouse gasses using a market-based emission reduction program. The success of the Exchange sends a signal to the U.S. Government that the goal and mechanisms of the Kyoto Protocol are within reach for our country.”