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 5F instead of the
current 60F. 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.

-------
     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.

-------