11 US States Join International Carbon Trading Effort

Governors Corzine and Spitzer carried the climate action torch to Europe on behalf of 9 other US governors to kick start work on an international carbon trading scheme. It's a serious effort to push the envelope on monetizing carbon and steal a march on formulation of US cap and trade law.

The effort is called the International Carbon Action Partnership or ICAP. The big time governors flew across the pond to let the world know that you can start trading carbon credits internationally, with or without US law or even an extension to Kyoto. Take a look at the founding members:

European Commission, France, Germany, Ireland, Italy, Netherlands, Portugal, United Kingdom, Regional Greenhouse Gas Initiative (RGGI) Members -- Maine, Massachusetts, New Jersey, New York, Western Climate Initiative (WCI) Members -- Arizona, British Columbia, California, Manitoba, New Mexico, Oregon, Washington, and New Zealand, Norway.

Impressive as it is, that's just for starters. "ICAP wants to be as inclusive as possible and invites public authorities and governments in all countries and regions that have established or are establishing cap and trade systems to participate."

The EU has a carbon trading scheme. RGGI is soon to launch one, as will WCI. What if you could connect the markets? Invite others to join? Entice China to come play? Pretty soon you have new global currency worth hundreds of billions of dollars and a marketplace where it can be traded. Let's watch this one closely.

It's another instance of US state leadership on climate action in the face of federal footdragging, in this instance at the international level. I took a quick look at Article I, Section 10, of the US Constitution, the section called Powers Prohibited of States:

No State shall enter into any Treaty, Alliance, or Confederation; grant Letters of Marque and Reprisal; coin Money; emit Bills of Credit; make any Thing but gold and silver Coin a Tender in Payment of Debts; pass any Bill of Attainder, ex post facto Law, or Law impairing the Obligation of Contracts, or grant any Title of Nobility.

No State shall, without the Consent of the Congress, lay any Imposts or Duties on Imports or Exports, except what may be absolutely necessary for executing it's inspection Laws: and the net Produce of all Duties and Imposts, laid by any State on Imports or Exports, shall be for the Use of the Treasury of the United States; and all such Laws shall be subject to the Revision and Controul of the Congress.

No State shall, without the Consent of Congress, lay any duty of Tonnage, keep Troops, or Ships of War in time of Peace, enter into any Agreement or Compact with another State, or with a foreign Power, or engage in War, unless actually invaded, or in such imminent Danger as will not admit of delay.

Nothing about trading carbon. Looks like these governors are in the clear.

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