Sid A. Imam

Master of Project Management Candidate

Project Management 441 Northwestern UniversityEvanston , IL, USA March 10, 2009Instructors: Lois Vitt SaleHelen J. Kessler

Two Types:

The primary footprint: measure of our direct

emissions of CO2 from the burning of fossil fuels

The secondary footprint: measure of the indirect CO2 emissions from the

whole lifecycle of products

Industrial world standard tool for addressing global warming

Policymakers would set a mandatory cap on emissions

of carbon dioxide and provide companies with economic

incentives to reach that cap at the lowest possible cost

Industrial world standard tool for addressing global

warming

Policymakers set a mandatory cap on

emissions of carbon dioxide and provide companies

with economic incentives

Alcoa, AIG, Boston Scientific, BP America, Caterpillar, ConocoPhillips,

Chrysler, John Deere, Dow, Duke Energy, DuPont, Environmental

Defense Fund, Exelon, Ford, FPL Group, General Electric, General

Motors, Johnson & Johnson, Marsh, National Wildlife Federation,

Natural Resources Defense Council, NRG Energy, The Nature

Conservancy, PepsiCo, Pew Center on Global Climate Change, PG&E,

PNM Resources, Rio Tinto, Shell, Siemens, World Resources Institute,

and Xerox

Target: Reduction of green house gas (GHG) to at least

25 percent below 1990 levels by 2020 and 80 percent

below 1990 levels by 2050

o Negotiation process for a post-2012 climate

change regime

o January 1, 2008 marked the formal start of

the compliance period of the Kyoto Protocol

and of Phase II of the European Union

Emission Trading Scheme (EU ETS).

EU ETS

Allowance Markets

Project-based

Markets

Compliance

Driven Markets

o Program for GHG reduction in developing Countries

o Works with within the framework of the Kyoto Protocol's Clean Development Mechanism(CDM) or Joint Implementation (JI)

Cap & trade Carbon tax

Lengthy regulatory process Not complex

Tradable permits = assets Regulatory mandate

May limit innovation Will foster more innovation

Voluntary market Governed by legislation

Currency/ Price & political risk Less prone to those risk

Many players; complex structure

Less players

After 2012 the path is not clear Regulator can make policy

o Cap-and –trade Proposals in the U.S. Congress:

Boxer-Lieberman-Warner Bingaman-Specter McCain-Lieberman Sanders-Boxer Kerry-Snowe Oliver-Gilchrest