Greening US likely to create huge carbon market

[Omaha Steve]

http://environment.newscientist.com/article/dn13325-greening-us-likely-to-create-huge-carbon-market.html

* 10:15 15 February 2008
* NewScientist.com news service
* Catherine Brahic

The new US president will most likely see in the emergence of a colossal carbon trading market, worth $1 trillion a year by 2020, according to a report released on Thursday.

Another report, also out this week, estimates the US could be trading $600 billion in pollution credits annually by 2015.

Either way, "it will be the largest environmental market of its kind," says Tiffany McCormick Potter, senior analyst for Point Carbon, which produced the 2015 estimate. According to Point Carbon, the European carbon trading scheme totalled $42 billion in 2007.

The 2020 estimate comes from New Energy Finance, another financial analysis firm which focuses on environmental markets. Both firms have this week published independent reports on the future of carbon trading in the US.
Market control

Both reviewed the climate-change bills being discussed in US congress at the moment, most of which propose adopting a market system to regulate emissions of the greenhouse gas known as cap and trade.

All four leading candidates to the White House – Hillary Clinton, Mike Huckabee, Barack Obama and John McCain – have openly supported cap and trade.

FULL story at link.

[phantom power]

1. mental image:

[all.of.me]

2. Can somebody explain this to me?

I don't quite get it.

Thanks!

[phantom power]

3. The basic idea is this:

The world (or a country) sets up some kind of limits to the amount of CO2 each business can produce. Now, suppose you are a business who produces less CO2 than you are allowed. Then you have "carbon credits." You can sell those credits to a business who is producing more CO2 than their limit.

So, you have a "carbon trading" market.

It sounds plausible, until you start wondering who's going to set these limits, who is going to enforce them, and who is going to audit all of the CO2 accounting that is required to make this system work. We can't even agree on what the "embodied carbon" of most products or services is. It's not really an easy question to answer, although it sounds straightforward in theory.

[all.of.me]

4. Ok. That makes sense.

It's kind of like carbon offsets? My only problem with them is that people can buy their way out of environmentally incorrect lifestyles, instead of changing that lifestyle. Does that basically hold true with carbon trading, too? Why should businesses not have to change their ways to become cleaner when they can get credits from someone who is cleaner? I'm not having an easy time putting this into words, but it makes me think of the roommate situation where one is doing all the work, while the other takes advantage of that. :)

[phantom power]

5. Yes, companies would "purchase" the ability to pollute more.

The idea makes some sense in theory: If you are a business that is not agile, you could (literally) buy yourself time to adjust. If you assume a strong government that is approximately uncorrupted by corporate influence, it might be feasible. That certainly doesn't describe our government.

I don't really think it matters. Nobody in power wants to do this. And, like CAFE standards, events have overtaken our attempts at policy initiatives. Ecological and economic collapse are already beginning to brake our activities, and that is only going to accelerate.

[all.of.me]

6. Thanks.

We'll just have to wait and see how this pans out.

[Spoonman]

7. It isn't just the current administration,

We've been betrayed on multiple fronts!

Our very own Al Gore buys his carbon offsets through Generation Investment Management:

http://www.generationim.com /

An investment firm that is, you guessed it own by Al Gore

Gore's company, (he's the founder and CEO), GIM was specifically established, according to their own documents, to invest in and or buy companies poised to cash in on Global Warming concerns.

Generation is based in London, with its U.S. offices in Washington, DC. The firm will manage the assets of institutional investors such as pension funds, foundations and endowments, as well as those of select high net worth individuals.*
* like Al Gore