Skip to comments.Cap-and-trade a Revenue Stream for Northeast USA
Posted on 02/10/2013 6:31:17 AM PST by eagleye85
Remember cap-and-trade? Back in 2010, Democrats in Congress had a proposal to set a nationwide limit on U.S. greenhouse-gas emissions and let businesses trade pollution permits. But the climate bill died, and cap-and-trade mostly vanished from discussion.
Except in the Northeast. For the past decade, ten states stretching from Maine to Maryland have been experimenting with their own modest cap on carbon pollution from electric power plants. And, this week, the Regional Greenhouse Gas Initiative (RGGI) announced that it would continue to cut emissions by tightening the cap between now and 2020. So how effective has the RGGI program been? It depends on how you look at things. The top-line news is encouraging: Carbon-dioxide emissions from power plants in the Northeast have fallen very sharply since the plan was first devised from 188 million tons of carbon-dioxide in 2005 to 91 million tons in 2012.* Yet a good chunk of that drop was driven by the recession, which bit into electricity demand, as well as by the fact that power plants across the country have been swapping out coal for cheaper natural gas, which reduces carbon emissions. In fact, power-plant emissions in the Northeast have been falling much, much faster than the cap requires: Emissions are currently 45 percent below the RGGI cap of 165 million tons for 2013. ...
Ultimately, RGGI might best be thought of less as a solution to climate change and more of a revenue-raiser for the Northeast. Its also an experiment of sorts a way for policymakers to figure out what works and what doesnt in climate policy.
(Excerpt) Read more at washingtonpost.com ...
Global carbon trading system has ‘essentially collapsed’
Joan MacNaughton, a former top UK civil servant and vice chair of the high level panel, told the Guardian: “The carbon market is profoundly weak, and the CDM has essentially collapsed. It’s extremely worrying that governments are not taking this seriously.”
The panel said that governments needed to reassure investors, who have poured tens of billions into the market, by pledging a continuation of the system, and propping up the market by toughening their targets on cutting emissions, and perhaps buying carbon credits themselves.
Even more important is the power to control.
This is ALL about a few making a lot of money, and political control. And that’s all it is about.
All it is, is the old shell game....
Such crap. Invent a whole market for intangible products. Oh yeah, that will work. For the elite few that stood to make great fortunes while producing nothing of substance. About as thoughtful as some of those other financial products, like collaterized debt obligations.
Cap and trade is a tax, nothing more. A penalty nothing more.
That’s right. RGGI includes the Freak State!
Maryland “Freak State” PING!