Carbon: Commodity or currency? The case for an international carbon market based on the currency model

Harvard Environmental Law Review

Volumn 32, Issue 2, 2008, Pages 571-596

  Button, Jillian ^a  

^a HARVARD LAW SCHOOL   (United States)

Author keywords

[No Author keywords available]

Indexed keywords

CARBON EMISSION; COMMODITY MARKET; CURRENCY; EUROPEAN UNION; INTERGOVERNMENTAL RELATIONS;

EURASIA; EUROPE;

EID: 50249148418     PISSN: 01478257     EISSN: None     Source Type: Journal    
DOI: None     Document Type: Article

References (142)

1. Rutger de Witt Wijnen, Emissions Trading under Article 17 of the Kyoto Protocol, in LEGAL ASPECTS OF IMPLEMENTING THE KYOTO PROTOCOL MECHANISMS 403, 403 (David Freestone & Charlotte Streck eds., 2005).
2. Herman E. Daly, The Return of Lauderdale's Paradox, 25 ECOLOGICAL ECON. 21, 22 (1998), (citing JAMES MAITLAND, EARL OF LAUDERDALE, AN INQUIRY INTO THE NATURE AND ORIGIN OF PUBLIC WEALTH AND INTO THE MEANS AND CAUSES OF ITS INCREASE 57 (2d ed. 1819)).
3. INTERNATIONAL ENERGY AGENCY, ACT LOCALLY, TRADE GLOBALLY: EMISSIONS TRADING FOR CLIMATE POLICY 123 (2005).
4. ICAP members consist of European Union members, states of the United States and Canada participating in the RGGI program and the WCI, as well as New Zealand and Norway. See generally ICAP Website, http:// www.icapcarbonaction.com/declaration.htm (last visited Apr. 1, 2008).
5. Robert Casamento, Accounting for and Taxation of Emission Allowances and Credits, in LEGAL ASPECTS OF IMPLEMENTING THE KYOTO PROTOCOL MECHANISMS, supra note 1, at 55, 62
6. EU Allowance Prices Hit 15-Week High, CARBON FINANCE, Oct. 16, 2007;
7. Lance Coogan, Opportunity Knocks, CARBON FINANCE, Aug. 20, 2007.
8. Coogan, supra note 6.
9. See Casamento, supra note 5, at 61-62.
10. AAUs are issued by Annex I countries pursuant to their assigned amounts under arts. 3.7 and 3.8. See Kyoto Protocol to the United Nations Framework Convention on Climate Change ("UNFCCC"), Dec. 10, 1997, 37 I.L.M. 22 [hereinafter Kyoto Protocol]. CERs and ERUs are generated by investing in emission reduction projects under the Marrakesh Accords, UNFCCC, Conference of the Parties, Report of the Conferences of the Parties on its Seventh Session, Decision 16.CP7, 17.CP7 U.N. Doc. FCCC/CP/2001/13/Add.2 (Jan. 21, 2002).
11. The EC Council Directive establishing the EU ETS refers simply to "allowances," Council Directive 2003/87, art. 3(a), 2003 O.J. (L 275) 32, 34) (EC) [hereinafter Directive 87]. These units, however, are commonly referred to as "EUAs" in analytical literature (see, e.g., Karan Capoor & Philippe Ambrosi, STATE AND TRENDS OF THE CARBON MARKET 6 (2007))
12. and in the market (see, e.g., The Green Exchange, Listing of New NYMEX Carbon, Nitrogen Oxides (NOx) and Sulfur Dioxide (SO2) Based Emission Allowance Futures and Options Contracts, http:// www.greenfutures.com/notices/ntm138.php (last visited Apr. 19, 2008)) (on file with the Harvard Environmental Law Review).
13. Electricity Supply Act, 1995 N.S.W. Acts No. 94 §97AB.
14. See, e.g., EU Linking Directive (EC) 2004/101, art. 11a(3)(b), 2004 O.J. (L338) 18-19 [hereinafter EU Linking Directive].
15. See, e.g., REGIONAL GREENHOUSE GAS INITIATIVE MODEL RULE § XX1.2(k) (2007) ("No provision of this regulation shall be construed to limit the authority of the REGULATORY AGENCY to terminate or limit such authorization to emit. This limited authorization does not constitute a property right."). The Kyoto Protocol and Marrakesh Accords are silent on the matter, as is the EU Emissions Trading Directive. Consider the contrast with New Zealand's Individual Transferable Quotas in Fisheries, which purport to create property rights.
16. Tom Tietenberg, Tradable Permits in Principle and Practice, in MOVING TO MARKETS IN ENVIRONMENTAL REGULATION 63, 79 (Jody Freeman & Charles D. Kolstad eds., 2007).
17. The question of whether an emissions right is a property or quasi-property right is an interesting one, and is particularly pertinent to the relationship between the unit-holder and the government. Legislative drafters who carefully preclude any property rights are likely attempting to prevent future claims against the government by permit-holders arising from government action which devalues that person's carbon units, for example by changing the regulatory system. See Matthieu Wemaere & Charlotte Streck, Legal Ownership and Nature of Kyoto Units and EU Allowances, in LEGAL ASPECTS OF IMPLEMENTING THE KYOTO PROTOCOL MECHANISMS, supra note 1, at 35. It is, however, an issue which is beyond the scope of this article, which focuses on how carbon units are exchanged in the marketplace rather than the relationship it creates between unit-holders and governments.
18. Wijnen, supra note 1, at 403-04.
19. Directive 87, supra note 10.
20. Wemaere & Streck, supra note 13, at 48.
21. 2 allowance"). The final report prepared by the Market Advisory Committee to the California Air Resources Board provides guidance on a wide range of carbon trading regulatory design issues, but does not discuss the legal form of carbon. MARKET ADVISORY COMMITTEE TO THE CALIFORNIA AIR RESOURCES BOARD, RECOMMENDATIONS FOR DESIONING A GREENHOUSE GAS CAP-AND-TRADE SYSTEM FOR CALIFORNIA 68 (2007), [hereinafter MARKET ADVISORY COMMITTEE].
22. Wemaere & Streck, supra note 13, at 37.
23. Javier Blas, China Alliance for Barclays Capital, FT.COM, Oct. 10, 2007, http://us.ft.com/ftgateway/ superpage.ft?news_id=fto101020070032147600. ("Barclays Capital will announce on Wednesday a strategic commodities alliance with China Development Bank to provide Chinese companies with risk management in the energy base metals and emissions sectors.");
24. John Clapp, Power, Sector Specialist, Citi Market and Banking, Address to McDermott Will & Emery 10di Energy Conference (Oct. 10, 2007) ("Commodity trading: Certified Emission Reductions - Citi is currently assessing several projects in both China and India across a variety of technologies including small hydro, wind energy and biomass generation.").
25. See International Swaps and Derivatives Association, ISDA Commodity Definitions, Exhibits, Annexes and Confirmations, http:// www.isda.org/publications/isdacommderivdefsup.html (last visited Apr. 1, 2008 (on file with the Harvard Environmental Law Review)).
26. Martijn Wilder, Monique Willis & Mina Guli, Carbon Contracts, Structuring Transactions: Practical Experiences, in LEGAL ASPECTS OF IMPLEMENTING THE KYOTO PROTOCOL MECHANISMS, supra note 1, at 295, 331.
27. Id. at 311.
28. GARNAUT CLIMATE CHANGE REVIEW, INTERIM REPORT TO THE COMMONWEALTH, STATE AND TERRITORY GOVERNMENTS OF AUSTRALIA 45 (2008), available at http://www.garnautreview.org.au (follow "Reports, Papers and Specialist Submissions" hyperlink).
29. The spot market is currently patchy. The first spot trade of CERs reportedly took place in 2007. Chicago Climate Exchange, First-Ever CER Spot Trade, 11(4) CCX MARKET REPORT 2 (Nov. 2007), available at http://www.chicagoclimatex.com/does/publications/CCX_ carbonmkt_V4_i11_nov2007.pdf. Spot trades can be conducted over Climex.
30. See Climex, CER Spot Trading Is Now Available on Climex, http:// newvalues.blutarsky.nl/downloads/ CER%20spot%20trading%20-%20five%20steps.pdf (last visited May 15, 2008).
31. The carbon futures market is well established, with carbon futures contracts traded on several exchanges, including the Chicago Climate Exchange, the Green Exchange, and the European Climate Exchange.
32. 2e) for a specified price on a specified date. See, e.g., Green Exchange, EUA Futures Contract Details, http:/ /www.greenfutures.com/markets/?s=4&id=6 (last visited Apr. 19, 2008);
33. European Climate Exchange, What Are Futures?, http:// www.europeanclimateexchange.com/default_flash.asp (last visited Apr. 19, 2008).
34. Global commodity prices slump and spike in "commodity price cycles." See generally Paul Cashin, C. John McDermott, & Alasdair Scott, Booms and Slumps in World Commodity Prices (International Monetary Fund, Working Paper No. WP/99/115, 1997), available at http://www.imf.org/external/pubs/ft/wp/1999 /wp99155.pdf.
35. According to Regina Betz, "[f]our different influences on allowance prices have been identified by market observers: immaturity of the market; general price driving factors; supply factors; [and] demand factors." Regina Betz, What Is Driving Price Volatility in the EU ETS?, AUSTRALLAN EMISSIONS TRADING FORUM REVIEW 4, 4 (Oct. /Nov. 2006), available at http://aetf.emcc.net.au/pdf_reviews/ ReviewOctNov2OO6.pdf.
36. See generally European Climate Exchange, http:// www.europeanclimateexchange.com (last visited Apr. 1, 2008).
37. 2e. See generally Chicago Climate Exchange, CFI Contract Specifications, http://www.chicagoclimatex.com/content.jsf?id=483 (last visited Apr. 14, 2008).
38. 2 Emissions Futures Product Description, http:/ /www.nymex.com/RS_spec.aspx (last visited Apr. 1, 2008);
39. NYMEX NOx Emissions Futures Product Description, http://www.nymex.com/ RN_Spec.aspx (last visited Apr. 1, 2008).
40. Press Release, NYMEX to Launch First Contracts in Green Exchange Initiative, (Feb. 25, 2008), available at http:// www.greenfutures.com/news/news3.php.
41. Jürgen Lefevere, Linking Emissions Trading Schemes: The EU ETS and the 'Linking Directive', in LEGAL ASPECTS OF IMPLEMENTING THE KYOTO PROTOCOL MECHANISMS, supra note 1, at 511, 512.
42. Michael Mondshine, Jette Findsen & Christina Davies, The Currency of Carbon, CARBON FINANCE, Jan. 14, 2005.
43. The reference here can be taken to refer to Gold Standard carbon credits approved by the Gold Standard Foundation, a non-profit based in Switzerland. Indeed, this standard could be used as a global denominator against which other emissions units are measured, but another standard might be developed.
44. To an extent, price pegging is already occurring in the CER market. China's informal CER pricing policy sets a minimum price floor of U.S. $10.40-11.70 per ton. Capoor & Ambrosi, supra note 10, at 21.
45. CER forward contracts are sometimes pegged to the price of EUAs. Id. at 32-33 ("Most of these [secondary CER trades] have contracts calling for fixed prices, although the contract may be pegged to a percentage of a specified forward EUA price, e.g. 78% of a Dec-'08 EUA.").
46. A. Denny Ellerman, Paul L. Joskow & David Harrison, Jr., EMISSIONS TRADING IN THE U.S. - EXPERIENCE, LESSONS, AND CONSIDERATIONS FOR GREENHOUSE GASES 11, 27 (2003), available at http://www.pewclimate.org/docUploads/emissions_trading.pdf.
47. The Market Advisory Group to the California Air Resources Board recommends that banking, but not borrowing, be permitted. Market Advisory Committee, supra note 17, at 66. Senators McCain and Lieberman's proposed Climate Stewardship Act would allow firms to borrow a portion of their compliance units. Pew Center on Global Climate Change, Summary of the Lieberman-McCain Climate Stewardship Act, www.pewclimate.org/policyņter/analyses/s_139_summary.cfm (last visited April 5, 2008).
48. MARKET ADVISORY C0MMITTEE, supra note 17, at 66.
49. Casamento, supra note 5, at 58-60.
50. Id. at 65.
51. Id.
52. UK Minister Mulls Personal Carbon Trading, CARBON FINANCE, Jul. 31, 2006.
53. Id.
54. Interview with Professor Jody Freeman, Harvard Law School, in Cambridge, Mass. (Nov. 20, 2007). Professor Freeman recounted that in discussions with New York based finance lawyers, the term "security" was used to refer to emissions rights.
55. Simon Mart, Implementing the European Emissions Trading Directive in Germany, in LEGAL ASPECTS OF IMPLEMENTING THE KYOTO PROTOCOL MECHANISMS, supra note 1, at 431, 441.
56. Bruce Yandle, Grasping for the Heavens: 3-D Property Rights and the Global Commons, 10 DUKE ENVTL. L & POL'Y F. 13, 22 (1999).
57. Id. at 38.
58. Ellerman, Joskow & Harrison, supra note 37 at 16;
59. Richard Rosenzweig, Matthew Varilek & Josef Janssen, THE EMERGING INTERNATIONAL GREENHOUSE GAS MARKET 1, 3 (2002), available at http://www.pewclimate.org/docUploads/trading.pdf.
60. INTERNATIONAL ENERGY AGENCY, INTERNATIONAL EMISSION TRADING: FROM CONCEPT TO REALITY 36-37, 123 (2001).
61. 2 units through the Acid Rain Program were power companies, and most trades were compliance-driven. EPA, ACID RAIN AND RELATED PROGRAMS: 2006 PROGRESS REPORT 12 (2006).
62. Transfers through an EPA-administered online transfer system constituted 94 percent of total transfers. Id.
63. See ICAP Website supra note 4.
64. ICAP Declaration, http://www.icap-carbonaction.com/declaration.htm (last visited Apr. 18, 2008) ("ICAP will establish an expert forum to discuss relevant questions on the design, compatibility and potential linkage of regional carbon markets.").
65. See Ellerman, Joskow & Harrison, supra note 37, at Exec. Summ. iv.
66. Rosenzweig, Varilek & Janssen, supra note 49, at 1.
67. See Capoor & Ambrosi, supra note 10, at 35. "[Restricting US markets to domestic offsets] would be a missed opportunity to use the efficiency of the global market to ensure the maximum environmental benefit through ambitious emission reduction targets.");
68. Ellerman, Joskow & Harrison, supra note 37, at Exec. Summ. v;
69. THOMAS. H. TIETENBERG, EMISSIONS TRADING: PRINCIPLES AND PRACTICE 62 (2006).
70. See Wemaere & Streck, supra note 13, at 53.
71. Jon Rosales, Economic Growth and Biodiversity Loss in an Age of Tradable Permits, 20 CONSERVATION BIOLOGY 1042, 1046 (2006) (citation omitted).
72. Some of the likely investors include the commodity trading arms of large industrial firms, which are experienced in oil and other commodities. See, e.g., Sumitomo to Trade Carbon, CARBON FINANCE, Sept. 18, 2006.
73. See America's Climate Security Act of 2007, S. 2191 110th Cong.;
74. Low Carbon Economy Act of 2007, S. 1766, 110th Cong.;
75. Climate Stewardship and Innovation Act of 2007, S. 280, 110th Cong.;
76. Global Warming Pollution Reduction Act, S. 309, 110th Cong. (2007);
77. Electric Utility Cap and Trade Act of 2007, S, 317, 110th Cong.;
78. Global Warming Reduction Act of 2007, S. 485, 110th Cong.;
79. Containing and Managing Climate Change Costs Efficiently Act, S. 1874, 110th Cong. (2007);
80. Climate Stewardship Act of 2007, H.R. 620, 110th Cong.;
81. Safe Climate Act of 2007, H.R. 1590, 110th Cong.
82. However, Senator Dingell, a Democrat and Chairman of the Energy and Commerce Committee, is reportedly working on a carbon tax bill which would impose a tax on coal, petroleum and natural gas, as well as gasoline, and would distribute the revenue amongst various social and environmental portfolios. John Dingell, Summary of Draft Carbon Tax Legislation, http://www.house.gov/dingell/carbonTaxSummary.shtml (last visited April 5, 2008) (on file with the Harvard Environmental Law Review).
83. See also COMMITTEE ON ENERGY AND COMMERCE, CLIMATE CHANGE LEGISLATION DESIGN WHITE PAPER: SCOPE OF A CAP-AND-TRADE PROGRAM 3 (2007) (proposing to supplement a cap-and-trade program with tax measures).
84. See TIETENBERG, supra note 56, at 4 (discussing early theories about environmental markets).
85. The question of which exchange rate system should be used is an important one, and beyond the scope of this article and the expertise of its author. Briefly, if a fixed rate system were used, carbon currencies could be valued against a "gold standard" carbon unit, or in International Monetary Fund language, a unit similar to the "Special Drawing Right." If a floating exchange rate system were adopted, governments could float their carbon currencies against a dominant currency, such as an EUA. See generally HAL SCOTT, INTERNATIONAL FINANCE: TRANSACTIONS, POLICY AND REGULATION, at Chapter 8 (15th ed. forthcoming June 2008) (on file with author).
86. The creation of an independent European carbon bank is argued by British Prime Minister Gordon Brown to promote "the longer-term transparency and predictability that the market needs." Paul Taylor, UK's Brown Calls for EU Carbon Bank, REUTERS Feb. 21, 2008, http://www.reuters.com/article/environmentNews/idUSBRU00633120080222 (on file with the Harvard Environmental Law Review).
87. See MARKET ADVISORY COMMITTEE, supra note 17, at 18 (suggesting that environmental integrity, cost-effectiveness, fairness and simplicity are key features of a cap-and-trade system).
88. See Luke Brander, Kyoto Mechanisms and the Economics of their Design, in CLIMATE CHANGE AND THE KYOTO PROTOCOL 25, 32-34 (Michael Faure, Joyeeta Gupta & Andries Nentjes eds., 2003).
89. Capoor & Ambrosi, supra note 10, at 40.
90. LULUCF CERs are those generated through "land use, land use change and forestry" projects under the CDM or JI as authorized by rules adopted at COP9 in December 2003. UNFCCC, Conference of the Parties, (Mar 30, 2004) Report of the Conferences of the Parties on its Ninth Session, Decision 19.CP9 U.N. Doc. FCCC/CP/2003/6/Add.2.
91. The EU ETS has been criticized for allowing too many Chinese project-based credits onto the EU market. Stephanie Baker-Said, Carbon Traders Create Cheap Credits in China for Sale in Europe, BLOOMBERG.COM, Nov. 5, 2007, http://www.bloomberg.com/apps/ news?pid=20601170&refer=special_report&sid=ayq1nbYcdsco (on file with the Harvard Environmental Law Review).
92. Save Rainforests Under a Separate Carbon Market, Argues CCAP, CARBON FINANCE, Sept. 14, 2007, available at http:// www.carbon-financeonline.com/ index.cfm?section=global&action=view&id=10752 [hereinafter Save Rainforests Under a Separate Carbon Market].
93. EU Linking Directive, supra note 12, at 18.
94. The New South Wales Greenhouse Gas Abatement Scheme includes "transferable NSW Greenhouse Abatement Certificates" and "non-transferable Large User Abatement Certificates." GGAS Fact Sheet: Abatement Certificates 1 (2004), http:/ /www.greenhousegas.nsw.gov.au/documents/syn85.asp.
95. Save Rainforests Under a Separate Carbon Market, supra note 70
96. (citing Kevin Conrad, Ambassador of Environment and Climate Change for Papua New Guinea and Executive Director of the 30-Member Coalition for Rainforest Nations, cited in Save Rainforests Under a Separate Carbon Market, supra note 70.
97. CNN Commodity Prices, http://money.cnn.com/data/commodities (last visited Apr. 15, 2008).
98. Forests Now Declaration, http://www.forestsnow.org. (last visited Apr. 18, 2008) ("Deforestation in the tropics and sub-tropics contributes between eighteen and twenty-five percent of global carbon emissions, second only to the use of fossil fuels. Policy debates have been dominated by clean energy solutions, yet forests indisputably offer one of the largest opportunities for cost effective and immediate action and must now be treated with equal urgency.... Yet tropical forests continue to be excluded from carbon markets ....").
99. ALAN SYKES, PRODUCT STANDARDS FOR INTERNATIONALLY INTEGRATED GOODS MARKETS 1-9 (1995), excerpted in John H. Jackson, William J. Davey & Alan O. Sykes, Jr., LEGAL PROBLEMS OF INTERNATIONAL ECONOMIC RELATIONS 576, 576 (4th ed. 2002).
100. Save Rainforests Under a Separate Carbon Market, supra note 70.
101. INTERNATIONAL ENERGY AGENCY, ACT LOCALLY, TRADE GLOBALLY: EMISSIONS TRADING FOR CLIMATE POLICY 125 n.109 (2005).
102. SYKES, supra note 76, at 577.
103. This is evidenced by the volatility of the EUA price. See, e.g., Carbon Positive, EU Carbon Market on Volatile Run, (2008), http:// www.carbonpositive.net/viewarticle.aspx?articleID=1020.
104. The U.S. voluntary market was worth $91 million in 2006. Lisa Kassenaar, Carbon Capitalists Grab Gas From Pig Waste in Evangelical Quest, BLOOMBERG.COM, Nov. 7, 2007, http:/ /www.bloomberg.com/apps/ news?pid=20601170&refer=special_report&sid=asbxvOim4WxM (on file with the Harvard Environmental Law Review).
105. These projects typically involve the capture and thermal destruction of HFC-23 (a powerful GHG) which would otherwise be emitted as a waste byproduct from the production of the refrigerant HCFC-22. HFC-23 is an extremely potent GHG, which is easily removed by installing scrubbers, meaning that foreign investors can generate large numbers of credits with low levels of investment, making it the "low-hanging fruit" of the CDM. Richard Van Noorden, Cleaning Up on the Carbon Market, CHEMISTRY WORLD, Apr. 2007.
106. Stephanie Baker-Said, Cashing in on Pollution, BLOOMBERG MARKETS MAGAZINE, Dec. 2007.
107. Jasmine Hyman, The Gold Standard - An Identity Shift, CARBON FINANCE, Jun. 19, 2007.
108. See Press Release, Climate Group, VCS Launch - A New Quality Assurance for the World's Carbon Market (Nov. 19, 2007) (on file with author).
109. Hyman, supra note 84.
110. Baker-Said, supra note 69.
111. Marr, supra note 46, at 441.
112. U.S.C. § 7651b(f) (2000).
113. See Taylor, supra note 64.
114. Global Carbon Market Will Reach ∈ 100bn by 2020 - Celent, CARBON FINANCE, Oct. 30, 2007, available at http:// www.carbon-financeonline.com/ index.cfm?section=global&action=view&id=10841.
115. First Reserve, the world's biggest energy-focused private equity firm, has made $1 billion available to Blue Source for carbon credit-producing projects. Kassenaar, supra note 81.
116. Credit Suisse and Morgan Stanley are also moving hundreds of millions of dollars into carbon finance. Baker-Said, supra note 83.
117. Mondshine, Findsen & Davies, supra note 34, (citing WORLD TRADE ORGANIZATION, INTERNATIONAL TRADE STATISTICS 113 (2004)).
118. In North America, both the New York Stock Exchange, the Toronto Stock Exchange, and the NYMEX are reportedly eyeing the carbon market. Nymex Plans Carbon Futures, CARBON FINANCE, May 17, 2007;
119. Toronto Stock Exchange Eyes Carbon, CARBON FINANCE, Aug 5, 2005;
120. see also Danny Fortson, Euronext to Launch Carbon Trading Market, BUS. WK., Oct. 23, 2007.
121. The Hong Kong Exchange & Clearing, the Bolsa de Mercadorias & Futuros in Brazil, the National Commodity & Derivatives Exchange in India and the Dalian Commodity Exchange in China are also reported to be expressing interest in carbon-related products. Hong Kong Exchange Considers Carbon Trading, CARBON FINANCE, Dec 11, 2006.
122. See, e.g., Steve Charnovitz, Trade and Climate: Potential Conflicts and Synergies, in PEW CENTER ON GLOBAL CLIMATE CHANGE, BEYOND KYOTO: ADVANCING THE INTERNATIONAL EFFORT AGAINST CLIMATE CHANGE 141, 144 (2003).
123. Wemaere & Streck, supra note 13, at 46-47.
124. The WTO has the power to negotiate amendments under the Final Act Embodying the Results of the Uruguay Round of Multilateral Trade Negotiations. Final Act, Apr. 15, 1994, 33 I.L.M. 1125, Art. X (1994).
125. See General Agreement in Tariffs and Trade, Oct. 30, 1947, 61 Stat. A3, 55 U.N.T.S. 187, arts. I (General Most Favored Nation Obligation) and III (National Treatment on International Taxation and Regulation).
126. Charnovitz, supra note 95, at 142.
127. See CERs: The Carbon Currency of Choice, CARBON FINANCE, Apr 26, 2004.
128. Charnovitz, supra note 95, at 162.
129. Id.
130. See Pascal Lamy, Director General, WTO, Address at Yale University: The WTO and its Agenda for Sustainable Development (Oct. 24, 2007).
131. See David Freestone, The UN Framework Convention on Climate Change, the Kyoto Protocol, and the Kyoto Mechanisms, in LEGAL ASPECTS OF IMPLEMENTING THE KYOTO PROTOCOL MECHANISMS, supra note 1, at 3, 18-21.
132. See World Bank, Climate Change, http://web.worldbank.org/html/ extar/thematic.htm (follow "Environment" link then "Climate Change" link).
133. IMF, The IMF and Civil Society: Reducing the Impact of Climate Change (2007), http://www.imf.org/external/np/exr/cs/news/2007/121407.htm.
134. IMF, Articles of Agreement, July 22, 1944, Art I(ii)-(iv).
135. See also id. art. IV.1, which sets out the undertakings of each member government to assist the IMF to "assure orderly exchange arrangements and to promote a stable system of exchange rates."
136. Id. arts. IV.2, IV.3, IV.4.
137. Id. art. III.1.
138. Id. art VII.2.
139. See Gold in the IMF, www.imf.org/external/np/exr/facts/gold.htm (last visited Apr. 5, 2008).
140. IMF, Articles of Agreement, arts. III.A, V.12(d).
141. INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT, INSTRUMENT FOR THE ESTABLISHMENT OF THE RESTRUCTURED GLOBAL ENVIRONMENT FACILITY, EXECUTIVE DIRECTOR'S RESOLUTION No. 94-2, GLOBAL ENVIRONMENT FACILITY TRUST FUND (1994);
142. Freestone, supra note 104, at 16.