1. Carbon Trading The impacts of its co-pollutants on the low-income communities and the communities of color in Los Angeles By John Lee Harvard University Extension School 5/22/2008

2. Kyoto Protocol and Green-house Gas Reduction Cap-and-Trade system is included in the Kyoto Protocol Cap-and-Trade system is included in the Kyoto Protocol Climate stabilization with 2 degrees warmer Climate stabilization with 2 degrees warmer Reduction of Carbon Dioxide (60% - 80% on 1990 emission by 2050) * Reduction of Carbon Dioxide (60% - 80% on 1990 emission by 2050) * In California, 80% reduction necessary In California, 80% reduction necessary Hepburn 2007

3. The problem The dominant Greenhouse gas (CO 2 ) is a global problem. The co-pollutants are the local problem.

4. Air Pollution in Los Angeles John Lee 2008

5. The Port of Los Angeles John Lee 2008

6. City of Wilmington John Lee 2008

7. City of Wilmington John Lee 2008

8. Minority Population in Los Angeles Census 2006 http://quickfacts.census.gov/qfd/states/06/06037.html

9. Air Pollution Disparity http://www.epa.gov/triexplorer/

10. Minority Residents and Emissions in Los Angeles Boer, J. T., M. Pastor, et al. (1997). "Is There Environmental Racism? The Demographics of Hazardous Waste in Los Angeles County. " Social Science Quarterly (University of Texas Press) 78(4): 793-810 Boer 1997

11. The History of Cap-and-Trade System Tetraethyl Lead (Pb) Phase Out in gasoline Tetraethyl Lead (Pb) Phase Out in gasoline CFCs Phase out (Montreal Protocol) CFCs Phase out (Montreal Protocol) Sulfur Dioxide Reduction Sulfur Dioxide Reduction Nitrogen Dioxide Reduction (limited success) Nitrogen Dioxide Reduction (limited success)

12. Environmental Justice Groups and the low-come communities and the communities of color are against the trading because of following reasons: No meaningful Community involvements Possible formation of “hot-spots” Aggregated Exposure of many types of pollutants Already over burdened with pollution

13. Industries want: Flexibility (ability to choose which ones to reduce first) Predictable policy (to prepare for the future reductions) Clean Technology at the affordable price (a critical component of emission reduction)

14. Government wants: Administratively feasible approach (greater the number of regulated sources, higher the cost of administration) Ability to monitor effectively System which offers flexibility to industries

15. The people of Global South needs: Stabilization of Green-house Gases Ability to mitigate the impacts of climate change

16. Criticisms of Cap-and-Trade system - Emission trading is unethical. In traditional command-and-control system, waivers are allowed. In traditional command-and-control system, waivers are allowed. - No community involvements Under command-and-control system, communities have little influence over the control technology regulation (state or national level). * Under command-and-control system, communities have little influence over the control technology regulation (state or national level). * Farrell 2004

17. Well-Designed Cap-and-Trade System Adopt an up-steam, economy wide cap-and-trade system to ensure overall reduction (i.e., capping the distribution points, importation points, fuel extraction points,….) Equitable (no reduction or insignificant reduction not acceptable for low-income communities and the communities of color) No “hot-spots” (photo-chemical reactions) Cost effective (over command-and-control system) Permit allocation: free distribution and open auction Economically viable yet environmental outcomes ensured

18. Conclusion Up-stream approach reduces number of regulated sources, reduces carbon emission/co- pollutants, and gives industries the options Up-stream approach reduces number of regulated sources, reduces carbon emission/co- pollutants, and gives industries the options Improve community involvements (with the help of expert volunteers) Improve community involvements (with the help of expert volunteers) Invest in the clean technologies (auctioning allowances generates revenues) Invest in the clean technologies (auctioning allowances generates revenues) Invest for the alternative energy Invest for the alternative energy Sustainable lifestyle Sustainable lifestyle