Russia resurrects the Kyoto Protocol and the prospect of either mandatory CO2 emissions cuts for U.S. utilities, or the start of a global trade war.
In June 2001, the Bush administration withdrew an earlier campaign pledge to support the Kyoto Protocol, claiming that the treaty was fatally flawed in not requiring China and India to reduce carbon dioxide (CO2) emissions and that the science underpinning the treaty was not yet definitive enough to justify the costs of compliance.1
Fortnightly Magazine - August 2004
Buyers generally acquire a mix of long- and short-term contracts, with the goal of finding the optimal trade-off between price and flexibility.
For both buyers and sellers, forward contracts guarantee the exchange of a known quantity of goods at a known price and for a given time frame. From the buyer's perspective, such a contract not only guarantees delivery of a critical good, at an agreed upon price, but also reduces the costs of procurement operations, as prices do not have to be negotiated continually.