“The ETS is not fit for purpose,” Joanna Cabello from Carbon Trade Watch said in Climate News Network’s story. “It has generated windfall profits for polluting corporations, postponed the needed transition away from fossil fuels, and its unintended consequences are locking the EU into another generation of energy production based on fossil fuels. These structural flaws remain unaddressed by the [European] Commission.
“Instead of taking their responsibility, politicians have voluntarily put their main instrument to fight climate change in the hands of the financial markets. As we know, market mechanisms have their own dynamic. Profit-making and not fighting climate change has become the overriding objective of the players involved in carbon trading.”
The European Union Emissions Trading System (EU ETS), also known as the European Union Emissions Trading Scheme, was the first large emissions trading scheme in the world, and remains the biggest. It was launched in 2005 to combat climate change and is a major pillar of EU climate policy. As of January 2013, the EU ETS covers more than 11,000 factories, power stations, and other installations with a net heat excess of 20 MW in 31 countries—all 27 EU member states plus Croatia, Iceland, Norway, and Liechtenstein. The installations regulated by the EU ETS are collectively responsible for close to half of the EU's emissions of CO2 and 40% of its total greenhouse gas emissions.
When the Kyoto Protocol was being negotiated in 1997, the European Union opposed the United States’ proposal to introduce carbon trading and “offsetting” as a form of compliance with mandated greenhouse gas emissions reductions.
Instead, the EU favoured coordinated policies and measures.
But by 2001, when the US unilaterally abandoned climate negotiations, the EU had already reversed its position and enthusiastically supported delivering the fate of climate policy to a speculative market.
In 2005, industrial lobbies and big fossil fuel corporations, such as BP and Shell, finally got what they wanted: a market for CO2 emissions rights that would allow industries to continue polluting and even reap a profit.
The first phase of the EU Emissions Trading System (EU ETS), from 2005 to 2007, was, by any standard of evaluation, a complete disaster. CO2 emissions from covered sources went up, not down. The 2007 cap was 8.3% higher than the 2005 verified emissions level.
The second phase, from 2008 to 2012, was only marginally less bad. The cap was only 2% lower than the 2005 emissions.
Only in 2009 did emissions fall — due to the economic crisis that reduced production and, consequently, fuel use, an October 2010 Friends of the Earth Europe report said.
Originally posted by Kali74
Nah. Citizens aren't taxed for carbon, well at least not here in the US, I'm not sure about elsewhere. The big polluters are supposed to be taxed and ....
Originally posted by Kali74
True and true.
A side effect most likely but not really what I wanted to draw attention to