Tufts is first university to join environmental market

Tufts has become the first university to join an exchange for pollution permits intended to reduce greenhouse gas emissions.

The University recently accepted an invitation by the Chicago Climate Exchange (CCX) to join a pilot project of over 20 major companies that aim to reduce their collective greenhouse gas emissions in the United States and Brazil by one percent a year. By 2006, they intend to emit four percent less than they did, on average, between 1998 and 2001. Canada and Mexico will also be added to the exchange shortly.

The exchange gives members a financial incentive to reduce pollution production by allowing those who cut emissions by more than their quota to sell their unexercised pollution rights to firms which are unable to meet the target. Since different polluters incur different costs for reducing emissions, it is more cost-effective for some to buy permits than to reduce pollution. Environmental groups can also purchase pollution credits so that they cannot be used.

Trading in pollution permits began Oct. 1 and the first auction priced carbon dioxide emissions between 60 cents and $2.90 per metric ton. CCX charges 2.5 cents for every ton of carbon dioxide traded on the exchange.

The exchange also deals in other greenhouse gases besides carbon dioxide, such as sulfur dioxide and nitrous oxide. Ultimately, emissions of these gases are converted into an equivalent tonnage of carbon dioxide.

The exchange is monitored by the National Association of Securities Dealers and is legally binding for members, which include Motorola, DuPont, Ford Motor Company and Amtrak.

Bill Moomaw, senior director of the Tufts Institute of the Environment, explained that this new commitment will require Tufts to continue with the efforts it has already started.

He said the challenge for Tufts was "to use the energy we use more efficiently, and electricity for heating systems more efficiently as well."

"This is all very new, [we are] learning how to make these changes and how to participate in something that is going on as publicly as the Chicago Climate Exchange," he said.

This market-based approach -- an alternative to blanket government regulation -- is strongly favored by the Bush administration, which has been strongly criticized by environmentalists for its approach to the environment.

"The US is the largest emitter per person [of greenhouse gases] but our administration has taken the least action of anyone in the world," Environmental Engineering professor Paul Kirsher said.

Tufts was selected to join the CCX because of the commitment made in 1999 by Former President John DiBaggio to reduce emissions to meet or beat the expectations of the Kyoto Protocol.

The installation of solar panels for heat and electricity atop the planned Sophia Gordon residence hall is one of the University's major initiatives to keep down emissions. Construction of the 150-bed dorm will be partially financed by a $500,000 grant from the Massachusetts Renewable Energy Trust.

Other emissions reduction efforts include more efficient lighting and the adoption of hybrid and battery-powered cars for use by University staff.

According to Kirshner, New England will feel climate change in the form of increased flooding, more occurrences of Lyme and tick disease, and reduced water quality.

"The $4 to $5 million spent cleaning up the Boston harbor could be negated by climate change, and actually make it worse," he said.

On Oct. 29, University President Larry Bacow, chief executive of the Chicago Climate Exchange Richard Sandor, and Randall Kroszner of the University of Chicago Business School and former member of the Council of Economic Advisors will participate in a panel discussion about the program.