Cargill commits to lowering greenhouse gases

Minnesota-based Cargill has joined the Chicago Climate Exchange. Participation in the exchange is voluntary. But many businesses believe government pressure to reduce pollution will eventually make membership in such exchanges mandatory.

In joining the exchange, Cargill committed to a 6 percent reduction in its greenhouse gas emissions by 2010. Companies can earn credits for reducing emissions and then can sell the credits to other businesses.

Lately, credits have been selling for $4 per metric ton of emissions. But Cargill spokesman Bill Brady says the company doesn't expect pollution credits to become a major profit center.

"That wasn't really the motivation behind joining it. It was to support the basic concept of market-based climate change mitigation," says Brady, "using the tools of the free market to encourage profitable business activities that also address the best long-term interests of the planet."

Cargill, based in Wayzata, is an international provider of food and agricultural products and services.

Other climate exchange members include Ford, IBM and Dupont.