Two signs that Carbon Trading won’t work the way you think it will.
1. It’s going to be so heavily policed to keep the prices stable enough to attempt to have a proper impact, it will end up like a flat Carbon Tax.
“Aug 13 2009, 11:20 am by Daniel Indiviglio : Speculating On Carbon : Washington is beginning a pre-emptive strike on speculation in the upcoming carbon-emissions market. Bloomberg reports that the big banks like Goldman and JP Morgan will be restricted from driving the market. Some in Congress are worried about the wild price swings that have been seen in oil and other commodities over the past few decades, for which Wall Street is generally blamed. Preventing bank speculation would remove Wall Street from the equation…”
2. Governments will not necessarily sign up to Carbon Trading.
“Australian Senate Rejects Carbon Trading Bill : August 14, 2009 : Australia’s Senate on Thursday defeated a government plan to introduce a carbon trading system by a vote of 42 to 30. The Greens Party joined forces with the Conservatives to defeat the measure, which would have forced the country’s 1,000 worst polluters to buy CO2 permits, covering 75% of national emissions, in an effort to cut greenhouse gas emissions by 5% to 25% by 2020. The Greens Party wants tougher emissions targets, whereas some Conservatives want no trading scheme at all. Moreover, businesses fear the system would put Australia at a disadvantage globally if other countries fail to introduce similar measures. Prime Minister Kevin Rudd’s Labor government says it will return the bill to the Senate within three months…”
Carbon Trading simply won’t stimulate the kind of Carbon Emissions Reductions people say it will. Carbon Trading is all about making money out of trading Carbon, and nothing about stimulating investment in clean, Renewable Energy and clean Energy Efficiency.