This week in science policy the American Electric Power Co. and Duke Energy Corp. came to an agreement regarding issues affecting rainforest deforestation. The two major agreements that the corporations made were the use of 5% of greenhouse gas emission allowances in accordance with a cap and trade system, as well as an agreed upon proposal for companies to receive a sort of forest protection “credit” providing recognition for company activities that benefit forests.

The 5% allowance saved in greenhouse gas emissions is calculated to reduce emissions by approximately 340 million tons of CO2 annually and fund about 3.4 billion dollars per year in forest preservation efforts. This reduction in emissions is comparable to that of France and Spain. The business credits in turn will generate 12 to 15 billion dollars within the next six years to be used towards international conservation efforts.

“This investment will pay dividends in the future, and it will help make a sizable dent in reducing these emissions,” said the Natural Resources Defense Council President Frances Beinecke. She expressed that, though the issue of big business’ large contribution to emissions has been highly debated for many years, this is the first “very major significant step” in the movement to avoid deforestation altogether.

While the environmental facets of this agreement are surely key, Michael Morris, the CEO of American Electric Power, emphasizes that this consensus has an advantage on the commerce side of things. It is a “very constructive and consumer-friendly way to go about it” said Morris. The agreement pledges to push for conservation, restoration and sustainable management of forests in developing nations to be the primary focus in all current and future federal climate legislation. This is critical because currently 20% of global greenhouse gas emissions result from tropical deforestation and other poor land use decisions. In fact the agreement demands that congress provide a reasonable sum of money, to be used over the next three years, for developing countries to begin implementing sustainable policy regarding their forest resources.

The agreement also discussed the timely implementation of restrictions on market involvement for major emitters. They outlined fourteen cap and trade legislative principles requiring major emitters to adopt strategies to mitigate their emissions before they are allowed to participate in market activities.

This accord represents a significant change in the face of American Business. For quite some time our energy industry has stood stoic in the face of an increasingly environmentally responsible global energy scene. For too long it has stood by and refused to make any significant business sacrifices in the name of contributing to the environment. We are now turning over a new leaf, where businesses realize that the first step to solving the problem is admitting that there is a problem. With this agreement the American Energy Industry may be well on its way to becoming the forerunner of environmentally responsible business practices.

Discussion question 1: How might this change in American Energy business practices affect international trade and global anti-Americanism?
Discussion question 2: What conservation opportunities arise as a result of governmental support through regulation and monetary donation?

News Link:
http://www.scientificamerican.com/article.cfm?id=tropical-forests-cut-greenhouse-emissions