Practice?
Posted on 12/16/2009 9:17:27 PM PST by FromLori
How to get paid for laying off workers.
The world's carboncrats are beavering away this week on a vast new global cap-and-trade scheme that President Obama wants the U.S. to join. But before we do, maybe Americans should understand how this already works in practice. Union workers, take note.
The Kyoto Protocol of 1997 required signatories to reduce their carbon emissions, and the European Union in 2005 launched its own cap-and-trade system. The program sets a limit on carbon emissions, and companies are issued free carbon allowances that they can buy or sell based on their emissions needs.
Fast forward to this month's news that Corus, Europe's second-largest steel producer, is shuttering a giant U.K. steelmaking plant at Redcar, cutting 1,700 jobs. Corus blames the recession that has cut steel demand and says the British government hasn't done enough to help it.
Whatever the truth of that, there's little doubt that cap and trade made the closure much easier. The decline in steel production means European steelmakers have surplus carbon allowances. According to Carbon Market Data, a European research firm, in 2008 Corus had the second largest surplus of EU carbon allowances—7.5 million.
The EU is looking for ways to drive today's depressed allowance price of about $21 apiece back up to former highs of about $50, so Corus has the potential for a $375 million windfall. By closing Redcar's annual capacity of three million tons of steel, Corus will produce six million fewer tons of CO2. That means more carbon allowances, which could translate into about $300 million a year if credits hit $50. Corus is essentially being paid to lay off British workers.
Corus will also profit if it moves the production to India. As part of Kyoto, the United Nations created the Clean Development Mechanism to encourage
I am sorry moderator I am really trying not to do this here is the link
http://online.wsj.com/article/SB10001424052748704398304574598173402205330.html
Cool Thanks, sort of what i was looking for will follow the link
Great stuff
This is like farm subsidies for not growing wheat. All utilities have to do is close a few generators (and get paid) raise rates on the manufactured shortage (get paid some more).
What gets me is that these same people simultaneously utter “sustainability” out of the other side of their mouths....
Madness!
The “sustainability” isn’t for you, peon!
It’s the Anointed Ones’ sustained command-and-control they’re pushing.
Piling cap and trade schemes on top of international markets, which already are not free markets, makes the pretense that free markets exist in international trade even more absurd.
Practice?
Self explanatory. What isn't might be why any American, or Westerner, ever even considered such as self-destructive scheme, unless self-destruction was their goal.
I’m worried obama will use this
http://solveclimate.com/blog/20091207/obamas-treaty-making-powers-broader-recognized
An endless stream of money for doing nothing and workers put on the streets. Of course those people could get new "green" jobs, please pass the bong.
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