Submitted by Entergy Corporation
NEW YORK, New York - Partnership for Climate Action (PCA) members Dupont (NYSE:DD) and Entergy (NYSE:ETR) traded accumulated emissions reductions on November 1 to demonstrate that market-based trading can address global climate change.
"This shows that emissions trades can have quantifiable business value, and it underscores the strength of our commitment to stabilizing our CO2 emissions," said Jim Mutch, Entergy's vice president-environmental support.
Consistent with PCA guidelines, Entergy and Dupont both have established targets and timetables for reducing or capping greenhouse gas emissions associated with their operations. Dupont's target was to reduce its global CO2-equivalent emissions by 40% below a 1990 baseline by the year 2000. Entergy established a target of stabilizing CO2 emissions from its U.S power plants at 2000 levels through 2005. To meet its target, Entergy set guidelines to achieve 80% of the reductions through internal actions at its facilities and operations, and 20% through external offset projects and emissions trades.
Through actions, including investing more than $50 million in facility retrofits, Dupont has been able to achieve reductions in excess of its target. In early 2002, Dupont and Entergy began discussing a demonstration trade to show that Dupont could benefit from its surplus greenhouse gas reductions, while assisting fellow PCA member Entergy in achieving its target. Entergy and DuPont estimate that their trade will fall within the estimates of a recent analysis by emissions brokerage firm Natsource which indicated that verified emission reductions currently trade in the range of $1 to $5 per CO2-equivalent ton.
The PCA is a joint project of business and environmental leaders dedicated to climate protection. The two companies consulted with other PCA members in the process of structuring and implementing the trade, in order to further the PCA's common purpose of employing innovative strategies and harnessing market mechanisms to maximize reductions in greenhouse gas emissions.
"The PCA believes the business community should lead in demonstrating the use of market mechanisms, such as emissions trading, and that these types of actions should be recognized by government," said Jessica Holliday, who represents Environmental Defense on the PCA's Management Committee. For additional information on the PCA and the trade between Entergy and DuPont, please visit www.pca-online.org.
DuPont is a science company, delivering science-based solutions that make a difference in people's lives in food and nutrition; health care; apparel; home and construction; electronics; and transportation. Founded in 1802, the company operates in 70 countries and has 90,000 employees.
Entergy Corporation, with annual revenues of nearly $10 billion, is a major integrated energy company engaged in power production, distribution operations and related diversified services, with more than 15,000 employees. Entergy owns, manages or invests in power plants generating more than 30,000 megawatts of electricity domestically and internationally, is the second largest U.S. nuclear generator, and delivers electricity to about 2.6 million customers in portions of Arkansas, Louisiana, Mississippi and Texas. Through Entergy-Koch, L.P., it is also a leading provider of wholesale energy marketing and trading services, as well as an operator of natural gas pipeline and storage facilities.
Environmental Defense, a leading national nonprofit organization based in New York, represents more than 300,000 members. Since 1967 we have linked science, economics, and law to create innovative, equitable, and cost-effective solutions to the most urgent environmental problems.
Entergy Corporation is an integrated energy company engaged primarily in electric power production and retail distribution operations. Entergy delivers electricity to 2.9 million utility customers in Arkansas, Louisiana, Mississippi and Texas.
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