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Credit Trading Report SummaryThe National Wind Coordinating Committee (“NWCC”) has recently posted a new report on its web site “Credit Trading and Wind Power: Issues and Opportunities”. The report details the potential for using credit trading to meet demand for non-polluting energy, and shows how credit trading can be used as a tool to meet energy policy and environmental regulatory goals through market mechanisms. What are Credits?Credits are the attributes associated with production of electricity from non-polluting renewable resources like solar, wind, biomass, hydro, or geothermal. The attributes are created when the electricity is sold for consumption in the electric system and the renewable attributes are sold separately, or traded to meet regulatory requirements. What is Credit Trading?Credit trades are purchases, sales, or donations of credits to meet individual, corporate, or institutional (governmental bodies, educational institutions, or non-profit organizations are examples) goals for environmental quality, or to meet the requirements of environmental or energy policy regulations. For example, an individual might want to offset the pollution from driving his or her automobile by buying enough renewable energy production attributes to equal annual vehicle miles driven. A local government or university might have a goal to reduce or mitigate their contribution to emissions of climate change gasses or air pollution like CO2, SOX, NOX, or mercury. They could purchase credits that represent renewable energy production to achieve these goals. Why Should I Care?You might want to take individual responsibility for your own contribution to environmental problems. Your organization might have a goal of reducing its impact on air quality or climate change. Or you might have decision-making or staff responsibilities for energy or environmental regulations. In all these cases, credit trading provides a market-based method of meeting your goals and responsibilities. OK, What is in The NWCC Report?The new report reviews many existing credit trading programs and proposals. It analyzes credit trading opportunities, both to meet private market demand for renewable energy attributes and to efficiently implement public policy goals for energy diversity and environmental quality. The major issues with credit trading are discussed and guidelines are proposed as a checklist for consideration for those who might want to use the technique—either in the market or in regulatory programs. What are the Major Findings of the Report?The key insight is that renewable energy attributes are being traded separately from the electric energy produced by wind or other renewable forms of electric generation. This separate trading unlocks a new market for wind and other renewables. Credit trading is a market-oriented mechanism for bringing clean energy resources to meet both market demand and policy requirements at the least cost. Credits are available everywhere and serve corporate, institutional, and individual demands. Rules are required to protect consumers and to guarantee that credit buyers receive the environmental and energy diversity and security benefits that credit products and credit trading promise. Is There Related Work that Supports the NWCC Study Findings?Yes. A number of other organizations are involved in investigation of credits, in setting standards to certify credit products, and in support of the emerging credit trading market. Some examples:
Are Credits Offered on the Internet Today? Yes.
More Information on Credit Traders is Available from:
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© 1998-2007 NATIONAL WIND COORDINATING COLLABORATIVE
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