Sierra Pacific to Sell Its Forests to Combat Global Warming

Less than a week after the Schwarzenegger administration forced the California Air Resources Board to approve new legislation allowing them to do so, Sierra Pacific plans to immediately start selling its trees’ ability to absorb carbon dioxide from the air.  Schwarzenegger, who launched a three-day climate summit in Los Angeles on Wednesday, had originally planned to announce the agreement at an evening news conference but canceled it at the last minute.  He later released a short statement announcing the deal.

Carbon Credits Galore

Over the next several years, Sierra Pacific will manage 60,000 acres of it forests to boost the amount of carbon dioxide they absorb by 1.5 million tons, generating a tremendous amount of surplus carbon credits for the controversial timber company.  They in turn will sell these credits to smokestack industries to “help compensate” for their polluting emissions, which at current market prices will be worth upwards of $10 million.

A Beautiful Moneymaking Alliance

Sierra Pacific, California’s largest private landowner, also coincidentally announced a new deal with New York-based Equator LLC, a private equity fund that will work with Sierra Pacific to find buyers for its new carbon credit treasure chest.

“Combating Global Warming”

Environmental groups are calling the deal a sham made possible by language slipped into California’s revised forestry protocols last week which will allow the timber giant to continue its clear-cutting and other destructive environmental practices… And all while ostensibly helping to combat global warming.

      

California to Allow Timber Firms to Sell Carbon Credits

Last Thursday the Schwarzenegger administration pushed through new legislation that will allow huge timber firms like Green Diamond Resource Company and Sierra Pacific Industries to sell their carbon credits. Known for clear-cutting forests, a practice that wreaks havoc on wildlife and releases more carbon into the air than any other type of logging, these large companies are now going to benefit from the fight against global warming while continuing to destroy the environment.

Following the Money

As reported by Eric Bailey of the L.A. Times on Friday, many environmentalists believe that the rules which allow loggers who clear-cut their forests into the carbon market were designed to accommodate Sierra Pacific, which owns 1.7 million acres of California timberlands. Over the last decade Sierra Pacific has contributed $2.9 million to political campaigns–including more than $100,000 to Governor Schwarzenegger.

Carbon Credits

On its surface the American Clean Energy and Security Act (ACES) of 2009 is suppose to lead us toward a clean energy economy. But part of this act requires polluters to obtain government-issued “carbon credits,” which will allow them to pollute above the agreed upon limit. Companies that exceed this limit would then use their pollution credits to cover their extra emissions, and if a company doesn’t have any credits, they must buy them on the open market or pay a penalty.

Smoke & Mirrors

With the penalties being rather expensive, a polluter is motivated to find an alternative, or more credits. In theory the ACES is suppose to foster investment in clean technology, but in reality its more smoke and mirrors than real reform. Chairman Henry A. Waxman of the Energy and Commerce Committee and Chairman Edward J. Markey of the Energy and Environment Subcommittee drafted the bill, which gave 85 percent of the pollution credits to the biggest polluters in the country… and all for free.