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Shell Calls for Global Expansion of Cap-and-Trade CO2 Programs

By Eduard Gismatullin

Nov. 13 (Bloomberg) — Royal Dutch Shell Plc, Europe’s largest oil producer, said regional mechanisms to reduce carbon dioxide output should be expanded into a global cap-and-trade system to ensure more companies are forced to curb emissions.

“We need cap-and-trade mechanisms to come up in more parts of the world; we need these mechanisms to be linked to each other,” Ranjit Prasad, global head of CO2 trading at Shell International Transport & Trading, said in a video posted on the company’s Web site. “We need project-based mechanisms for those parts of the world where we don’t have mandatory caps.”

Under cap-and-trade programs, emitters are permitted to release a certain quantity of polluting gases and are allotted permits for that amount, which can be bought and sold as required. The European Trading Scheme, mandatory for heavy industry and power generators, is the world’s largest such system. There are also voluntary cap-and-trade programs such as the one operated by the Chicago Climate Exchange.

Shell and BP Plc are among companies supporting cap-and- trade. Industries that aren’t subject to obligatory emissions limits must commit to curbing their carbon output, Prasad said.

Almost 200 countries are due to gather in Copenhagen next month to hammer out the terms of a climate accord to replace the Kyoto Protocol, whose targets expire in 2012.

To contact the reporter on this story: Eduard Gismatullin in London at [email protected]

Last Updated: November 13, 2009 08:08 EST and its sister non-profit websites,,,,,, and are owned by John Donovan. There is also a Wikipedia feature.

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