Emissions Trading

Emissions trading is a key tool in both voluntary and mandatory greenhouse gas (GHG) emission reduction programs. Ford was an early participant in carbon markets, with a goal of gaining experience that will be valuable in an increasingly carbon-constrained world.

Ford, along with 11 other companies and the City of Chicago, founded the Chicago Climate Exchange. The Exchange marks the first time in the United States that major companies in multiple industries have made voluntary binding commitments to use emissions trading to reduce their North American GHG emissions. Ford has committed to reducing North American facility emissions by 6 percent between 2000 and 2010. The Exchange will enable participants to receive credit for their reductions and to buy and sell credits to find the most cost-effective way to achieve reductions.

Ford was also one of the original companies to join the UK Emissions Trading Scheme, the first government-sponsored, economy-wide, cross-industry greenhouse gas trading program. Ford Motor Company Limited (UK) entered the program in March 2002, committing to and achieving a 5 percent CO2 reduction target for eligible plants and facilities over five years.

In addition, the EU Emission Trading Scheme applies to nine Ford and Volvo facilities, though these facilities have relatively low to moderate CO2 emissions when compared to other industry sectors. Drawing on its experience in the Chicago and UK markets, Ford is participating in the EU Emissions Trading Scheme and has established internal business plans and objectives to maintain compliance with the new regulatory requirements.