Emissions Trading
Emissions trading is a key tool of both voluntary and mandatory GHG emission reduction programs. Ford was an early participant in carbon markets, with a goal of gaining experience valuable in an increasingly carbon-constrained world.
Ford, along with 11 other companies and the City of Chicago, founded the Chicago Climate Exchange. Ford committed to reduce North American facility GHG emissions by 4 percent by 2006, based upon an average 1998–2001 baseline period. This initiative was recently extended with a 6 percent overall reduction target by 2010. The Exchange marks the first time in the United States that major companies in multiple industries have made a voluntary binding commitment to use emissions trading for reducing their North American greenhouse gas emissions. The Exchange will enable participants to receive credit for their reductions and buy and sell credits to find the most cost-effective way of achieving reductions.
Ford and the Chicago Climate Exchange
Ford was also one of the original companies to join the UK Emissions Trading Scheme, the first government-sponsored, economywide, cross-industry greenhouse gas trading program. Ford Motor Company Limited (UK) entered the program in March 2002, committing to a 5 percent CO2 reduction target for eligible plants and facilities over five years.
Despite low to moderate CO2 emissions from Ford facilities when compared to other industry sectors, the EU Trading Scheme regulations apply to 15 Ford Motor Company (including Premier Automotive Group) facilities. Drawing on its experience in the Chicago and UK markets, Ford is participating in the EU Emissions Trading Scheme and established internal business plans and objectives to maintain compliance with the new regulatory requirements.
