EU WANTS WORLD IN GHG MARKET

Europe to Ask Wealthy Nations to Adopt Carbon Trading System
James Kanter, January 23, 2009 (NY Times)

"The European Commission was preparing an appeal on Friday to wealthy countries — and to the United States in particular — to adopt carbon trading as one of the main mechanisms for curbing greenhouse gas emissions.

"The Europeans are drafting their proposal as the United States enters a period of intense debate over the wisdom of adopting such market-based systems…[U.S. President] Obama endorsed…a cap and trade…system [that]…sets a limit on emissions, and those who exceed it must buy or trade permits to meet it…Many analysts say that [a tax on emissions] would be a more straightforward way of limiting planet-warming gases from industry…

"…Europe has created the largest single market for trading permits to emit carbon dioxide, while Australia and some groups of American states have begun their own initiatives. But the European system has also come under fire for doing too little to stop pollution and for creating vast windfall profits for some industries…it has become more effective following a pilot phase, which ran from 2005 to 2007."

World emissions markets, 1-30-2009 (click to enlarge)

"European Union governments approved further measures late last year aimed at reducing the scope for lobbying by governments and industry that diluted the effectiveness of the system…

"In the past, efforts at reaching global, coordinated action on climate change have been undermined in large part because the United States insisted on binding emissions limits for countries like India and China. Those countries resisted mandatory rules, saying they had the right to industrialize and improve their citizens’ standards of living.

"Some of the businesses that regard emissions regulation favorably because it could promote new investment opportunities welcomed the latest proposals…"