United States
Environmental Protection
Agency
Policy, Planning and
Evaluation/Solid Waste and
Emergency Response
Climate Change and the
CBOT Recyclables Exchange
An Investment in the
Global Future
The atmosphere that surrounds the Earth contains many types of gases, including what
are known as "greenhouse gases. " These gases absorb and retain heat from the sun.
Without greenhouse gases, the average temperature on Earth would be 5°F instead of the
current 60°F. A buildup of these gases in the atmosphere, on the other hand, could raise
global temperatures, triggering profound changes in the Earth's climate and ecosystems.
The manufacture and distribution of products and the subsequent management of
solid waste can contribute to the formation of greenhouse gases. For this reason, as well
as for other environmental benefits, EPA is encouraging waste reduction efforts. The
Chicago Board of Trade (CBOT) Recyclables Exchange is one EPA program help-
ing to curb greenhouse gas emissions by increasing the market efficiency for handling
recyclable materials nationwide.
WHAT \s THE CBOT
RECYCLABLES
EXCHANGE?
The Chicago Board
of Trade (CBOT) is
working in partner-
ship with EPA, The
National Recycling Coalition, New York
State Office of Recycling and Economic
Development, and Washington State's
Clean Washington Center to link buyers
and sellers of recyclable materials across
the nation. Traders can log on to an elec-
tronic bulletin board to post and peruse
information about available and needed
recyclable commodities, such as glass,
plastic, and paper. In this way, an East
Coast company seeking to buy used news-
papers might find a supplier in the
Midwest that has a huge stockpile just
waiting to be recycled.
The Exchange also strengthens markets
for recyclable commodities by providing
reliable information about the prices
being paid for these materials. To help
meet the needs of those who require pre-
cise product definitions, the partnership
has developed a set of standardized prod-
uct attributes that buyers and sellers can
use to describe the characteristics of
recovered materials traded on the
Exchange. The partnership has also estab-
lished a set of standardized inspection
procedures to verify the quality of recy-
clables traded. This information will
assure buyers and sellers that they are pay-
ing and receiving fair market value for
quality recyclable materials.
Interest and participation in the
exchange has been considerable since it
began operating in October 1995.
CBOT has now introduced an Internet
version of the system (HTTP://www.
CBOT.com/recyclables/) to expand sys-
tem accessibility and ease of use. With
Printed on paper that contains at least 20 percent postconsumer fiber.
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this system improvement and other planned expansions,
even greater participation is anticipated.
How CAN THE CBOT
RECYCLABLES EXCHANGE
HELP REDUCE GREENHOUSE
CAS EMISSIONS?
By linking traders and strengthening markets, the
Exchange is boosting recycling efforts and
diverting valuable materials from disposal in
landfills and incinerators. The Exchange is
reducing greenhouse gas emissions in the following ways:
• Recycling diverts materials from incinerators. Plastics
and other synthetic materials emit greenhouse gases when
incinerated.
• Paper product recycling slows the harvest of trees.
Forests store large amounts of carbon (a key element in
greenhouse gases) that would otherwise enter the atmos-
phere and contribute to the greenhouse effect when
paper products are landfilled or incinerated.
• Manufacturing goods from recycled feedstocks typ-
ically requires less energy than extracting and process-
ing virgin materials. When energy demand decreases,
fewer fossil fuels are burned and fewer greenhouse gases
are emitted. By helping to ensure a market for recy-
clable materials, the Exchange is encouraging the man-
ufacture of products with recycled materials.
The CBOT Recyclables Exchange boosts recycling efforts by linking buyers
and sellers of recyclable materials across the nation.
How DOES CBOT FIT INTO
THE CLIMATE CHANCE
ACTION PLAN?
n October 1993, the Climate Change Action Plan
was initiated to strengthen our country's commit-
ment to reducing greenhouse gas emissions. The plan
outlines more than 50 voluntary initiatives designed
to reduce emissions of these gases to 1990 levels by the
year 2000. EPA is responsible for encouraging attain-
ment of about half of the reductions under this plan.
To achieve this goal, EPA plans to rely on voluntary
waste reduction programs such as the Recyclables
Exchange, and to design future initiatives to combat the
effects of global climate change.
"V
For more
information on
CBOT's Recycling Exchange,
or more information on
climate change and waste
reduction, contact EPA's
RCRA Hotline at 800-424-9346.
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