CLIMATE/ENERGY BILL PRICES SPEW

Climate Bill’s CO2 Permits to Cost $26 Each, Point Carbon Says
Simon Lomax (w/Richard Stubbe and Bill Banker), May 19, 2010 (Bloomberg BusinessWeek)

"Carbon dioxide allowances created by a new proposal to curb U.S. greenhouse gas emissions would have an average price of $26 between 2013 and 2020, Oslo-based environmental market analysis firm Point Carbon said.

"The allowances, each representing one metric ton of carbon dioxide, would be issued under legislation unveiled May 12 by Senators John Kerry, a Massachusetts Democrat, and Joseph Lieberman, a Connecticut independent."

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"Kerry and Lieberman’s legislation aims to cut U.S. output of the greenhouse gases scientists have linked to climate change 17 percent from their 2005 levels by 2020. It sets a maximum price for carbon allowances of $25 each and a minimum of $12 for 2013...The maximum and minimum prices would be increased each year above the rate of inflation.

"The cap-and-trade program’s allowances…[limit the impacts of] supply and demand…[with a] ‘price collar’ Point Carbon said…By 2020, the carbon market created by Kerry and Lieberman’s legislation would be worth $350 billion…"