A Brief History
Founded in 1992, the Clean Air Conservancy pioneered the “retirement” of pollution rights as a tool for improving the quality of our shared environment and slowing the pace of global climate change.
The CAC was a key participant in the first major sale of pollution rights, symbolically buying and “retiring” a single SO2 allowance. Administered by the Chicago Board of Trade under the mandate of the US EPA, this new “cap-and-trade” market-based approach traded government-issued permits that give their owner the right to emit one ton of Sulfur Dioxide, the major precursor of acid rain.
The CAC’s early vision of the potential of using these new markets was hailed by the national media including the Wall Street Journal, National Public Radio and the Associated Press.
Fifteen years ago, pollution markets were a novel experiment. Ironically, the simplicity and impact of our approach resonated immediately with school kids, always willing to embrace new ideas. The CAC quickly had a national network of schools regularly buying SO2 allowances with money earned from bake sales and car washes, all to offset the “SO2 footprint” of their classrooms.
Shortly after its founding, the CAC was recognized by Outside Magazine as a “Mighty Might” - one of the ten “best” small environmental non-profits.
By participating in the first SO2 auction, obtaining legal opinions, securing non-profit (501(c)(3)) status, and testifying before various regulatory authorities, the CAC established the legal framework for the donation and retirement of marketable environmental permits, allowances and offsets. We have now developed the instruments that companies can use to make tax-deductible donations of emissions reduction credits to the CAC.
In 1993, the CAC assisted the American Lung Association obtain regulatory approval for the donation of SO2 allowances by Northeast Utilities.
In 1995, we facilitated the direct donation and retirement of allowances from the South Coast Air Quality Management District in California, banking over 10 million pounds of SOX and NOX pollution reductions.
In 2001, the CAC facilitated the first major “event greening.” Working with the Olympic Organizing Committee, the CAC helped calculate the environmental impact of the Salt Lake City Winter Olympics and facilitated the donation and retirement of enough SO2, NOX and CO2 to make the winter games a “NETZERO” event.
In 2003, the CAC established the Clean Air Conservancy Trust to hold its retired allowances. Today, it holds over 7 billion pounds of SOX, NOX and CO2, and is one of the largest banks of retired credits and allowances.
Our 15 years of experience and leadership in trading environmental assets for the public good gives us a broad perspective, unparalleled depth of experience and the ability to move forward with speed, efficiency and, most importantly, wisdom.