Action Alert


Fair trade or free trade? Let your voice be heard on Minnesota’s future!


The Obama Administration is negotiating two new mega trade deals (one with Pacific Rim countries, another with Europe) entirely in secret, with the goal of further expanding the NAFTA-model of free trade. These trade agreements could have major impacts on Minnesota's farmers, workers, small business owners and rural communities. They could limit Minnesota’s ability to support local food and energy systems and grow local businesses. In order to stay up to speed, Minnesota has set up a new Trade Policy Advisory Council (TPAC) to advise the state legislature and Governor.


TPAC wants to hear from Minnesotans: What concerns do you have about free trade? What role could TPAC play in the future? Now is your opportunity to have a say in our future trade policy. Complete the survey and let them know future trade negotiations should be public, not secret. Help ensure the voices of all Minnesotans are heard in the development of trade agreements and that they protect local control and our quality of life. The free trade model has failed for Minnesota and we need a new approach to trade. Help ensure the voices of all Minnesotans are heard before trade agreements are completed, and that they protect local control, our natural resources and our quality of life.


Please take five minutes and complete the survey. To find out more about these trade agreements, go to iatp.org/tradesecrets.

Climate change and the World Cup

Posted June 22, 2010 by

Climate

To be in Brazil during the World Cup of futbol (soccer) is to see both a massive outpouring of national pride and mass marketing of the very first order. Museums will change their opening hours and churches will change the times they offer mass on any day that Brazil plays. Brazil will host the World Cup 2014. The government is already planning for ways to sweep the streets of beggars and hide the shanty towns (favelas) behind walls, not so they won’t be seen but so the favelas and beggar residents cannot interfere with the tourism and commerce of the tournament.

I am here to talk with NGOs about U.S. climate change policy and more specifically the U.S. financial reform legislation that will have much to do with how carbon emissions are traded in commodity futures markets if and when they are established. Given the current diplomatic stalemate in climate change negotiations, it would be idle to suggest that countries must compete more fiercely to reduce their greenhouse gas (GHG) emissions than they compete to win the World Cup. Certainly the stakes of losing the GHG Games are immeasurably higher than the national disappointment or even disgust when its team is ousted but where is that commercial GHG hook that will have “Beat Climate Change!” T-shirts outselling "Go Brazil" T-shirts?

Granted, the U.S. climate change story is not a happy one or one easy sell to Brazilian groups. Unhappily I explain that our most immediate challenge is not the members of the U.S. Congress who don’t believe that climate change is happening or that it is not serious enough to warrant a massive change in U.S. technology and investment policy. Our most immediate problems are the environmental organizations who believe that carbon markets will induce investment decisions to reduce GHGs.

Earlier this month, IATP published a critique of an International Emissions Trading Association (IETA) proposal that would finance GHG reductions by selling bonds to developing countries. The bond terms would be defined and administered by a new International Green Bond Board that would displace the Clean Development Mechanism of the Kyoto Protocol. The collateral for bond repayment would be developing country carbon credits that would be sold and resold in U.S. and EU markets. When I explained that several U.S. environmental organizations worked closely with IETA the Brazilian NGOs weren’t as shocked as I had been when I listened to IETA and the big enviros sing the same tune in Copenhagen.

They said that Brazilian conservation organizations, desperate for funds to fight the destruction of the Amazon by agribusiness, forestry and mining firms, had become believers that selling carbon offset credits to U.S. and EU businesses would stop the destruction of the Amazon. Indeed, as I had read in No Rain in the Amazon, some of the former deforesters were planting fast-growing eucalyptus trees to claim carbon offset credits from a space that once had been home to an immense wealth of biodiversity and climate stabilization. U.S. environmental groups, such as the Environmental Defense Fund (EDF), had sold Brazilian conservation groups on carbon markets in such market conditions.

If Wall Street and other financial centers remain fundamentally unreformed, they will create extreme price volatility in carbon markets, as surely as they did in agricultural and energy markets in 2006–2008. IETA has argued that there should be no limits on the number of carbon derivatives, based on the value of the carbon credits, that some draft U.S. legislation proposes to give away for free to the biggest polluters. Furthermore, IETA opposes any attempt to reduce unregulated trading in the over-the-counter markets.

IATP, with the Commodity Markets Oversight Coalition (CMOC) and Americans for Financial Reform (AFR), is fighting to put binding limits on derivatives trading and allow OTC trading only for commodity traders, such as municipal power companies, for whom the greater cost of trading on public and regulated exchanges impedes their ability to provide energy to all consumers. As Wall Street rains campaign contributions on New Democrats to help the Republican Party defeat reform, we fear that if real reform is defeated, the next bill to be bought and paid for by industry will be climate change legislation. Then the only thing for which we will be able to cheer is the World Cup—if it isn’t disrupted by drought, flash floods and more frequent and violent weather.




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