climateandcapitalism.com
Europe's third try at emissions trading: another failure
Europe's carbon trading plan has produced windfall profits for major polluters, while undermining efforts to reduce pollution Emissions trading is the European Union's flagship measure for tackling climate change, and it is failing badly. In theory it provides a cheap and efficient means to limit greenhouse gas reductions within an ever-tightening cap, but in practice it has rewarded major polluters with windfall profits, while undermining efforts to reduce pollution and achieve a more equitable and sustainable economy. The third phase of the scheme, beginning in 2013, is supposed to rectify the "teething problems" that have led to the failures to date. A new briefing from Carbon Trade Watch and Corporate Europe Observatory shows that: The EU Emissions Trading System (ETS) has failed to reduce emissions. Companies have consistently received generous allocations of permits to pollute, meaning they have no obligation to cut their carbon dioxide emissions. A surplus of around 970