With the expected U.N. climate deal in Copenhagen this December the emerging market of carbon credits could be the saving grace for the remaining Mexican rain forests.  Mexico has less than 10% of  its rain forests left. Uncontrolled population growth and the corresponding development have depleted the forests over the last two decades.   Now the subsistence activities of collecting fuel wood and agricultural clearing could threaten what rain forest is remaining.

But it is expected that participating countries in the U.N. Climate Change Conference in December will establish the use of carbon credits as a way to curb carbon emissions. Countries that emit more carbon than they should will be able to buy carbon credits from countries that have rain forests by paying to get the emerging countries to preserve their rain forests.

Mexico must make a choice. Should they develop their remaining rain forest or not. By introducing carbon as a commodity that a secondary market supports the choice becomes easier. They now can achieve economic gain by preserving the natural resource. Let’s hope all developing countries see the light.

The Obama administration has been relentless in its commitment to becoming a world leader on environmental issues. This week the U.S. House of Representatives is considering a 932 page bill that will set limits on carbon emissions. The administration wants to have passed legislation before the December United Nations Climate Change Conference in Copenhagen.

At issue is the cap and trade policy that the administration wants to advance. This would put a premium on the amount of carbon emissions that energy producers could emit by issuing permits. These permits could then be sold on the open market. Those that have permits and emit less than their permitted level could then sell these licenses to those that have the need to produce higher carbon emissions than their permitted level. This would encourage the advancement of technology that would reduce the need for these highly valued permits.

Opponents feel that this is risky because of the impact on the economy. The European Union, last week, sent signals that they had members that were wavering on the issue because of economic concerns. These concerns are legitimate, but they are unwarranted in the long run. This policy would essentially make carbon emissions a marketable commodity therefore placing economic value on the scarcity of the resource of a healthy environment. While this may change the focus of investment it will not take any economic resources out of the economy. Investment will shift to the area of highest returns.

The shift will be significant but it will also have almost immediate positive effects. For example bio fuel companies all over the world are poised to take a place in the market. The boost that this type of  legislation would give to these companies would be huge. They could become bigger than pharmaceutical companies were 10 years ago as far as attracting capital for research and growth.

Yesterday representatives from 16 different countries met in Washington D.C. to start work on a UN initiative to limit the effects of greenhouse gases on our environment. The countries represented produce about 75% of the world’s greenhouse gas emissions. The Obama admisinstration requested this meeting about month ago and other big greenhouse gas contributors like China and India agreed to attend.

The meeting was not meant to produce specific agreements but rather foster relationships between all interests so that an agreement can be reached at later meetings. These and other countries will meet in Copenhagen in December to review and revise the Kyoto Protocol. The Bush administration did not support the Kyoto Protocol siting the fact that it would be too harsh on the American economy and developing countries.

The good news is that the Obama administration is positioning themselves as a world leader on these issues. After the meeting U.S. Secretary of State, Hilary Clinton, offered “Climate change is a clear and present danger to our world that demands immediate attention.” 

There are going to be some very complex issues to deal with for the delegates in Copenhagen but the future of ouir planet could rest in their hands. The interests of developing conuntries as  well as those that are established can conflict. Economics will have to considered. But with the necessary changes will come economic opportunity. The challenge will be to strike the balance shares the opportunities and apportions the burdens equitably.

According to a Reuters article published yesterday (http://www.reuters.com/article/environmentNews/idUSTRE53N12720090424the) Obama administration is attempting to take the lead with the United Nations on the issue of global warming.  It is about time. The Bush administration was not sensitive to this issue. Many believed the Bush team was never on board with the concept of global warming.

You can expect that to change with Obama at the helm. Secretary of State Hilary Clinton will offer the opening remarks at the UN meeting this week. These actions are taking place in preparation for the meeting of international leaders in Copenhagen in December. This meeting is to extend and amend the Kyoto Protocol which is set to expire in 2012.

On the domestic front Al Gore is pushing for  U.S. climate legislation this year. Gore states that is the U.S. wants to be seen as a leader they must have the “moral courage” to act now. This will set the stage for the rest of the world to follow in Copenhagen.

It is time to stand up and take notice. The days of debating the existence of global warming should be behind us. Whether it is a man made event or whether it is natural is irrelevant if we don’t act now we are committing a crime against future generations.