Noem Campaign Calls on Varilek to Come Clean on Cap-and-Tax Support

Sioux Falls – With Matt Varilek denying that he spent the early part of his career as an environmental activist who supported a cap-and-trade scheme, the Kristi for Congress campaign today called on Varilek to come clean and admit that he has supported cap-and-tax while working for Natsource, a Wall Street firm that helped develop carbon trading markets around the globe.
 
“It’s troubling to see Matt Varilek mislead South Dakotans and deny his involvement in the development of the cap-and-tax scheme that would hit South Dakota farmers square in the pocketbook,” said Noem manager Tom Erickson. “South Dakotans deserve an honest conversation between the candidates, but that won’t happen as long as Cap-And-Tax Matt denies the facts.”
 
Prior to working for Sens. Daschle and Johnson (D-SD), Varilek was Director of Policy and Research at Natsource, a company that was intimately involved in cap-and-tax and the development of carbon trading markets around the globe. In testimony before the United States Senate, former Varilek collaborator Dirk Forrister described Natsource as a company that facilitates the trading of carbon trading credits between companies that face caps on greenhouse gas emissions.
 
In 2001, Matt Varilek spoke at a United Nations global warming summit in Morocco where countries around the globe adopted what is known in the environmental activist community as the “Marrakech Accords.” This agreement outlined how countries would implement the Kyoto Protocol, an international treaty that would cap greenhouse gas emissions around the globe. A brochure from Natsource touts their company’s involvement in the development of a carbon emissions trading program that would work in tandem with the greenhouse gas caps in the Kyoto Protocol.
 
Learn more about Varilek’s record as an environmental activist at http://capandtaxmatt.com/.

Varilek Worked At Natsource, a Firm at Forefront of the Cap-and-Tax Scheme:
 
Varilek Worked For Natsource, A Carbon Trading Firm.  “Matt Varilek, a 1997 Carleton grad and ENTS concentrator, was recently awarded a newly created scholarship to study at the University of Cambridge in the UK. … In the years between studying in the UK, Matt has been working as the Director of Policy and Research at Natsource LLC in New York. At Natsource Matt leads consulting projects on emissions trading and acts as a environmental brokerage. His clients have included the World Bank and the European Commission amongst other groups.” (“ENTS Alum Awarded Gates Scholarship,” The Green Bean, May 30, 2001)

Natsource Facilitates Trading of Carbon Credits Between Companies Facing Caps on Carbon Emissions. “Natsource is deeply involved in the international carbon markets on behalf of our clients. We are a leading environmental asset management firm and currently have approximately $1.2 billion in assets under management. This capital is used to purchase greenhouse gas (GHG) compliance instruments on behalf of industrial emitters that are required to reduce their GHG emissions, and GHG reductions and other environmental commodities on behalf of return investors.”  (TESTIMONY OF DIRK FORRISTER, MANAGING DIRECTOR, NATSOURCE LLC BEFORE THE SENATE COMMITTEE ON FOREIGN RELATIONS, APRIL 22, 2008)

Natsource Issued Layoffs As Cap-And-Trade Stalled In US. “Carbon asset manager Natsource reduced its global headcount in 2010 due to uncertain international climate policy and the lack of U.S. climate change legislation, a company spokesman said on Monday. ‘I can confirm that the company reduced its headcount in 2010,’ Natsource spokesman Richard Rosenzweig told Reuters, declining to comment on specific numbers. ‘The uncertainty in international climate change policy and the failure to enact a program in the U.S. made it very difficult to develop new business opportunities in the carbon market,’ he added.” (Nina Chestney and Risa Maeda, “Natsource cuts staff on climate pact delay,” Reuters, January 17, 2010)
 
Varilek Spoke At UN Climate Change Summit Focused on Capping Greenhouse Gas Emissions:
 
Kyoto Protocol Is International Treaty to Cap Greenhouse Gas Emissions Around the Globe. “The Kyoto Protocol is an international agreement linked to the United Nations Framework Convention on Climate Change. The major feature of the Kyoto Protocol is that it sets binding targets for 37 industrialized countries and the European community for reducing greenhouse gas (GHG) emissions. These amount to an average of five per cent against 1990 levels over the five-year period 2008-2012. The major distinction between the Protocol and the Convention is that while the Convention encouraged industrialised [sic] countries to stabilize GHG emissions, the Protocol commits them to do so.”  (“Kyoto Protocol,” United Nations Framework Convention on Climate Change, accessed August 23, 2012)
 
Rules to Implement Kyoto Protocol Were Agreed to at 2001 UN Conference in Marrakech, Morocco. “The Kyoto Protocol was adopted in Kyoto, Japan, on 11 December 1997 and entered into force on 16 February 2005. The detailed rules for the implementation of the Protocol were adopted at COP 7 in Marrakesh in 2001, and are called the ‘Marrakesh Accords.’” (“Kyoto Protocol,” United Nations Framework Convention on Climate Change, accessed August 23, 2012)
 
Varilek Spoke at 2001 Marrakech Conference on Climate Change. According to documents from the United Nations, Matthew Varilek spoke at the United Nations Farmework Convention on Climate Change in Marrakech, Morocco in November of 2001. (“LIST OF PARTICIPANTS,” UNFCC.int, November 8, 2001)
 
Group Lists Varilek Among Presenters Who Sent Message That “They Strongly Support The Kyoto Protocol.” “Their message to the negotiators was clear and simple: Leading finance companies are ready with financial products and services for greenhouse gas emission reductions. They strongly support the Kyoto Protocol and call on governments to establish feasible long-term frameworks based on market mechanisms to tackle climate change.” (“The Financial Sector and Climate Change,” unefpi.org, November 2001)
 
Natsource: Our Staff Help Develop Program to Trade Carbon Capped By Kyoto Protocol. “We are engaged in international and domestic discussions concerning climate change and policymaking. Our executives have participated in the development of the first project- based mechanism designed to reduce GHG emissions and have participated in international climate change negotiations as senior government officials. Natsource staff also participated in the development of the rules governing the project-based mechanisms incorporated in the [Kyoto Protocol] and international emissions trading. Natsource executives participated in the development of many of the trading systems that have created emissions markets and have written extensively on the GHG market, the impacts of trading system design on the achievement of environmental and economic results, and the role of technology in addressing climate change.” (Natsource corporate brochure, p. 4-5)
 
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