NEW YORK, March 24 (Reuters) - Carbon markets could one day help support the development of U.S. high-speed commuter rail lines, the head of the Chicago Climate Exchange (CCX) said on Tuesday.
The United States has lagged many countries in building high-speed trains that emit a smaller volume of planet-warming gases per passenger than auto or jet travel while also dramatically cutting down on travel time compared to cars and regular trains.
China, for instance, unveiled last summer a new 'bullet' train from Tianjin to Beijing that hits speeds of 220 miles per hour (350 kph) and chops an hour off the journey between the two cities.
Richard Sandor, the chair and chief executive of the CCX, said his organization has been working with the government-owned rail company Amtrak, which is a member of his bourse, to determine whether revenue from the developing carbon market can be directed to train companies.
'Clearly if a railroad gets (money from carbon trade), they could either retain it for investment or pass it on to the passenger,' Sandor told Reuters after a meeting in New York about infrastructure.
He said details have not been ironed out on how the money would be directed to rail. Carbon trade in the United States has already risen funds for clean projects, however.
For instance, the Regional Greenhouse Gas Initiative, a group of 10 states in the U.S. East that began regulating carbon dioxide emissions from power plants in January, has raised money for energy conservation funds by selling carbon permits to polluters and speculators in quarterly auctions.
President Barack Obama's recent budget proposal included $646 billion over eight years in revenues that could be generated from similar auctions on a national level. Obama hopes Congress will pass a bill this year regulating output of the gases.
The CCX, run by Britain's Climate Exchange Plc, is a voluntary carbon market. Members like companies and cities agree to cut emissions of greenhouse gases by a certain time. If they fail to do so, they are legally bound to buy credits representing emissions cuts generated by other members or projects, such as destroying the potent greenhouse gas methane from rotting pig waste at farms.
New York is just one of the places in the United States aiming to develop higher-speed trains. Governor David Paterson has said a three- to five-year plan to increase train top speeds to 110 mph (177 kph) would cost $3 billion. Another $2 billion would have to be spent in the next two years to raise the top speed to 140 mph (240 kph).
(Reporting by Timothy Gardner, editing by Marguerita Choy)
((timothy.gardner@thomsonreuters.com; RM: timothy.gardner.reuters.com@reuters.net; 646-223-6058)) Keywords: CARBON TRAINS (For help: Click 'Contact Us' in your desk top, click here or call 1-800-738-8377 for Reuters Products and 1-888-463-3383 for Thomson products; For client training: training.americas@thomsonreuters.com ; +1 646-223-5546) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
The United States has lagged many countries in building high-speed trains that emit a smaller volume of planet-warming gases per passenger than auto or jet travel while also dramatically cutting down on travel time compared to cars and regular trains.
China, for instance, unveiled last summer a new 'bullet' train from Tianjin to Beijing that hits speeds of 220 miles per hour (350 kph) and chops an hour off the journey between the two cities.
Richard Sandor, the chair and chief executive of the CCX, said his organization has been working with the government-owned rail company Amtrak, which is a member of his bourse, to determine whether revenue from the developing carbon market can be directed to train companies.
'Clearly if a railroad gets (money from carbon trade), they could either retain it for investment or pass it on to the passenger,' Sandor told Reuters after a meeting in New York about infrastructure.
He said details have not been ironed out on how the money would be directed to rail. Carbon trade in the United States has already risen funds for clean projects, however.
For instance, the Regional Greenhouse Gas Initiative, a group of 10 states in the U.S. East that began regulating carbon dioxide emissions from power plants in January, has raised money for energy conservation funds by selling carbon permits to polluters and speculators in quarterly auctions.
President Barack Obama's recent budget proposal included $646 billion over eight years in revenues that could be generated from similar auctions on a national level. Obama hopes Congress will pass a bill this year regulating output of the gases.
The CCX, run by Britain's Climate Exchange Plc, is a voluntary carbon market. Members like companies and cities agree to cut emissions of greenhouse gases by a certain time. If they fail to do so, they are legally bound to buy credits representing emissions cuts generated by other members or projects, such as destroying the potent greenhouse gas methane from rotting pig waste at farms.
New York is just one of the places in the United States aiming to develop higher-speed trains. Governor David Paterson has said a three- to five-year plan to increase train top speeds to 110 mph (177 kph) would cost $3 billion. Another $2 billion would have to be spent in the next two years to raise the top speed to 140 mph (240 kph).
(Reporting by Timothy Gardner, editing by Marguerita Choy)
((timothy.gardner@thomsonreuters.com; RM: timothy.gardner.reuters.com@reuters.net; 646-223-6058)) Keywords: CARBON TRAINS (For help: Click 'Contact Us' in your desk top, click here or call 1-800-738-8377 for Reuters Products and 1-888-463-3383 for Thomson products; For client training: training.americas@thomsonreuters.com ; +1 646-223-5546) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.