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Published on May 12th, 2012 | by Susan Kraemer

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Microsoft Implements Cap & Trade to Cut CO2

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May 12th, 2012 by  

bill-gates-microsoft-cap-&-trade-co2

Bill Gates has started to notice that the climate is a potential problem.”We need energy miracles” he said at TED. “The microprocessor and internet are miracles. This is a case where we have to drive and get the miracle in a short timeline.”

It’s always encouraging when someone with the power and reach to make real change gets it. Maybe his epiphany is why – with no filibuster obstructing progress -Microsoft has just announced that it will adopt an internal carbon price within each of the business units of the company beginning next year to help drive money in the direction of the miracles.

More than $10 million in clean energy investment could be the result, according to Robert Bernard, the company’s chief environmental strategist, quoted at Point Carbon.[PDF]

Microsoft will charge its business units that overshoot a carbon emissions level, and use the proceeds to buy renewable energy or emissions offsets (such as the Renewable Energy Credits (RECs) that utilities must buy if they are unable to meet mandated targets)

Emissions generated from its business units spanning 100 countries, through data centers, software development labs, offices and employee air travel must be balanced by investment in renewable energy or by buying credits for renewable energy produced by others.

Microsoft will use CO2 management software from the Australian company CarbonSystems to measure and manage its carbon emissions.

It will source credits from U.S.-based low-carbon energy marketer Sterling Planet, which deals in renewable energy certificates (RECs) and voluntary credits.

In its suggestions for how businesses can cut their carbon footprint, Sterling Planet emphasizes energy efficiency and buying certified renewable power from utilities. Other possible direct carbon cutting investments would include new renewable energy projects including wind farms and methane-capture facilities, and methane-capture-powered fuel cells to power data centers.

“By charging an internal fee for carbon emissions to the business groups responsible for incurring the emissions, we will build an investment fund that can be used for a variety of renewable energy and offset projects,” says Microsoft.

Microsoft is aiming to cut its CO2 emissions by 30 percent below 2007 levels before the end of this year. That means just six months to meet that deadline. By the end of next fiscal year, June 2013, Microsoft plans to be carbon neutral.

Stay tuned.

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About the Author

writes at CleanTechnica, CSP-Today, PV-Insider , SmartGridUpdate, and GreenProphet. She has also been published at Ecoseed, NRDC OnEarth, MatterNetwork, Celsius, EnergyNow, and Scientific American. As a former serial entrepreneur in product design, Susan brings an innovator's perspective on inventing a carbon-constrained civilization: If necessity is the mother of invention, solving climate change is the mother of all necessities! As a lover of history and sci-fi, she enjoys chronicling the strange future we are creating in these interesting times.    Follow Susan on Twitter @dotcommodity.



  • http://cleantechnica.com/ Zachary Shahan
  • RobS

    Michael you seem to predominantly rely on the fallacious argument that other sources produce larger amounts then human release therefore the small extra couldn’t possibly have any substantive effect. What the argument misses is the homeostatic cycle where those organic systems constantly release AND reabsorb CO2, they in fact absorb more CO2 then the natural release each year which is why the ocean is becoming more acidic and why the atmospheric CO2 is not rising by the full amount released through anthropogenic activity. The small added effect of burning millions of years worth of fossilised carbon every year IS enough to tip the balance of the system.
    There is a perfect analogy in my field of expertise, medicine. Potassium is an important salt in the body, most of it is found in the fluid inside the cells of the body but there is a constant state of flux to keep appropriate amounts inside and outside the cells necessary to maintain vital cell functions including our heartbeat (this is very similar to the flux of CO2 between organic systems and the atmosphere). The total amount of potassium in the body is ~3,500mEq. Yet if I inject 35 mEq of potassium it would be universally fatal, this because the small added amount tips the balance of the system which normally regulates the flux of potassium around the body.

    So if a 1% change in a chemical substance is enough to kill a person why then would a 3% change in CO2 not be capable of a similarly catastrophic effect on a much larger organic system?

  • Banana

    banana

  • L Michael Hohmann

    I am getting bored. The globe can be getting warmer or colder, but the idea that the human contribution from burning carbon fuels has anything to do with it is not only IMHO the biggest political and intellectual fraud ever – but so says the IPCC itself: http://cleanenergypundit.blogspot.com/2011/10/west-is-facing-new-severe-recession.html. The ongoing discussion pro and con is becoming akin to the scholastic argument as to how many angels can dance on the head of a needle. Which is, of course, exactly what is intended, to achieve worldwide disorientation away from the actual IPCC aims of their monetary and energy policies – and bringing a whole discipline, if not all, of science into disrepute in the process. Even the UK Royal Society has become Lysenkoist.
    That’s not to belittle the effort by thousands of scientists fighting for the truth in climate research, but I dismay over the practical effect of diverting all this brain power in a direction not at all relevant to the IPCC’s actual and declared political and financial intentions – or more importantly: away from the actual work that needs doing.
    All IMHO, of course. My musings for what they may be worth on my various blogsite entries, and at http://www.lmhdesign.co.uk/sustainability.php and the Planet page on that website.

    • http://ronaldbrak.blogspot.com.au/ Ronald Brak

      L Michael Hohmann, are you saying one or both of the following?

      1. Carbon dioxide is not a greenhouse gas.

      2. Human activity has not increase the concentration of CO2 in the atmosphere by about a third.

      • http://www.lmhdesign.co.uk/sustainability.php L Michael Hohmann

        1. CO2 may well be a greenhouse gas, but so is water vapour of which there is much much more in the atmosphere.
        2. It may well have done so, but the earth was much much warmer than now about a thousand years ago without any significant human CO2 production. See photo of Alps and explanation on one of my blogsites.
        3. And besides: the Sun delivers 4000 trillion kWh to the top of the atmosphere every 24 hours! How many kWh/day are produced by ALL CO2 reaching the atmosphere daily – of which human contribution is only about 3% which furthermore is completely swamped within the range of estimates for all other natural resources.

        See the rest of my various blogsite entries, and look at my postings on Facebook where I am Mike Hohmann – and where I quote at the sources for my opinions. I only know what I read, after all.

        Best of all (for my opinions and reasons) is my Sustainability Primer at http://www.lmhdesign.co.uk/sustainability.php

        • Ross

          Why would anyone want to read your opinions when you’re clearly a fool?

        • Bob_Wallace

          Michael, CO2 does not “produce” heat. CO2 traps heat.

          You clearly do not know what you are talking about.

          I’m glad you learn from reading. Given that that’s the case might I suggest you spend some time reading Skeptical Science. You’ll find the arguments presented in an easy to follow format and, if you want, you can drill deeper into the science on those issues that interest you most.

          http://www.skepticalscience.com/

          You might want to start with this page…

          http://www.skepticalscience.com/big-picture.html

          It lays out the basic principals and can help you get quickly past things like understanding how CO2 operates in our atmosphere.

          Also on that page the role of atmospheric moisture (clouds) is addressed. It seems that clouds play a dual role, both trapping heat and reflecting sunlight. How they will add or subtract to the overall problem is still being investigated.

          BTW, I think you have a typo. It’s not 3%, it’s closer/above 30%. We had about the right amount of CO2 in our atmosphere. It was keeping us from getting too cold while not trapping too much heat and making us too hot. We’ve increased the amount of CO2 significantly.

          You can read about that on this page….

          http://www.skepticalscience.com/its-not-us-intermediate.htm

          You might wish to back up and read the “Basic” page first and then go to the “Intermediate”.

          • http://www.lmhdesign.co.uk/sustainability.php L Michael Hohmann

            Heat is heat; so how many kWh/day get trapped by CO2? No typo here if sources quoted by me are correct; seen no arguments to the contrary.

          • Bob_Wallace

            If you want to list your sources here we’ll take a look.

            I’m not interested in digging through your stuff.

            Clearly you’ve either misrepresented your sources or picked some very incorrect ones.

            Do you think the argument “it’s gotten warmer before” has any validity? If so, why?

          • http://www.lmhdesign.co.uk/sustainability.php L Michael Hohmann

            “if you want to list your sources here we’ll take a look.” But I already have above: “See the rest of my various blogsite entries, and look at my postings on Facebook where I am Mike Hohmann – and where I quote all the sources for my opinions. I only know what I read, after all.
            Best of all (for my opinions and reasons) is my Sustainability Primer at http://www.lmhdesign.co.uk/sustainability/php.” Couldn’t possibly repeat hundreds of pages and references here. But they exist in locations quoted above.

          • http://www.lmhdesign.co.uk/sustainability.php L Michael Hohmann

            http://en.wikipedia.org/wiki/Heat
            Again: so how much heat gets trapped by CO2 – in Joule/day if you will.

        • http://ronaldbrak.blogspot.com.au/ Ronald Brak

          L Michael Hohmann, you seem unsure whether or not human activity has increased the level of CO2 in the atmosphere by about a third. Don’t you think you should find out for sure before forming an opinion about its role in global warming?

          • http://www.lmhdesign.co.uk/sustainability.php L Michael Hohmann

            A third of what?

          • http://ronaldbrak.blogspot.com.au/ Ronald Brak

            A third of what it was before humans began large scale emissions of of CO2 from burning fuels and to a smaller extent from land clearing. From say about 1750, but if you prefer a different starting date that’s fine by me.

          • http://www.lmhdesign.co.uk/sustainability.php L Michael Hohmann

            Ronald: in reply to suggest a different starting date: try anywhere between ~900 and ~1400CE and look at the temperature then.

          • http://ronaldbrak.blogspot.com.au/ Ronald Brak

            Okay. Are you sure that human activity has increased the level of CO2 in the atmosphere by roughly a third since then?

          • http://ronaldbrak.blogspot.com.au/ Ronald Brak

            L Michael Hohmann, I asked you if you know what effect human activity has had on CO2 levels because not knowing and asking people to pay attention to your opinions on global warming is like someone who doesn’t know what atria and ventricles are asking people to pay attention to their opinions on heart surgery.

  • Sol

    Sounds like a few Murdoch enterprises. Buying their way in to PR neutral territory. Why not install renewable generating methods at Microsoft sites? Or used LED lighting, or any other number of less obvious initiatives?

    • Ross

      Unless they lie about their internal monitoring of carbon production (e.g. by outsourcing) being carbon neutral by June 2013 is a degree of progress that most other companies are no where near attaining.

      • http://muckrack.com/dotcommodity Susan Kraemer

        Right. We should stay tuned, for June 2013, but that is a major goal, and by internally funding it with cap and trade (using fines/auctions etc on the least clean-powered business units) they will fire up real competition to swap dirty for clean renewable sources of energy.

  • Ross

    The shills in the US Congress would do better in the long run to start taking their lead from initiatives like this instead of the Koch bros.

    • Luke

      But money speaks more powerfully that morality. To be honest, I trust the tech sector (Google, Microsoft, Apple, etc) more than the U.S. congress.

      Now that’s something to be sad about.

      • Ross

        And many of them are bigger than small countries so collectively they can make a big difference.

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