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Climategate has killed cap-and-trade March 5, 2010

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Climategate has killed cap-and-trade

By Hoppy Kercheval
Charleston Daily Mail, March 5, 2010

THE Washington power play to pass cap-and-trade legislation is deflating like a punctured balloon, but all the air is not out of it yet.

According to Reuters, Sen. Lindsey Graham, R-S.C., a climate legislation supporter, told environmental leaders in a private meeting last week that “cap-and-trade is dead.” Graham has been working with John Kerry, D-Mass., and Joe Lieberman, I-Conn., for months to get a cap-and-trade bill through the Senate.

The House of Representatives approved a climate bill last June.

But in recent months, climate fears have dissipated. Americans are much more worried about the economy – and less convinced that man’s activities are causing a global meltdown.

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Australia Rejects Climate Cap-and-Trade Bill August 13, 2009

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Australia Rejects Climate Cap-and-Trade Bill

Via Watts Up With That, August 13, 2009

Australia Rejects Climate Cap-and-Trade Bill — Senators voted 42 to 30 against it: “It is a dog of a plan”


Aug. 13 (Bloomberg) — Australia’s Senate rejected the government’s climate-change legislation, forcing Prime Minister Kevin Rudd to amend the bill or call an early election.

Senators voted 42 to 30 against the law, which included plans for a carbon trading system similar to one used in Europe. Australia, the world’s biggest coal exporter, was proposing to reduce greenhouse gases by between 5 percent and 15 percent of 2000 levels in the next decade.

Rudd, who needs support from seven senators outside the government to pass laws through the upper house, can resubmit the bill after making amendments. A second rejection after a three-month span would give him a trigger to call an election.

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Could Cap and Trade Cause Another Market Meltdown? June 12, 2009

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Could Cap and Trade Cause Another Market Meltdown?

Mother Jones, June 8, 2009
By Rachel Morris

The same Wall Street players that upended the economy are clamoring to open up a massive market to swap, chop, and bundle carbon derivatives. Sound familiar?

You’ve heard of credit default swaps and subprime mortgages. Are carbon default swaps and subprime offsets next? If the Waxman-Markey climate bill is signed into law, it will generate, almost as an afterthought, a new market for carbon derivatives. That market will be vast, complicated, and dauntingly difficult to monitor. And if Washington doesn’t get the rules right, it will be vulnerable to speculation and manipulation by the very same players who brought us the financial meltdown.

Cap and trade would create what Commodity Futures Trading commissioner Bart Chilton anticipates as a $2 trillion market, “the biggest of any [commodities] derivatives product in the next five years.” That derivatives market will be based on two main instruments. First, there are the carbon allowance permits that form the nuts and bolts of any cap-and-trade scheme. Under cap and trade, the government would issue permits that allow companies to emit a certain amount of greenhouse gases. Companies that emit too much can buy allowances from companies that produce less than their limit. Then there are carbon offsets, which allow companies to emit greenhouse gases in excess of a federally mandated cap if they invest in a project that cuts emissions somewhere else—usually in developing countries. Polluters can pay Brazilian villagers to not cut down trees, for instance, or Filipino farmers to trap methane in pig manure.

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Cap and Trade or Tax and Charade October 10, 2008

Posted by honestclimate in Carbon Trading.
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Tax and Charade

by Roger Pielke, Jr

From the Science Policy blog, September 18, 2008

The New York Times had an article on the upcoming carbon dioxide auction of the Regional Greenhouse Gas Initiative (RGGI) of 10 northeastern U.S. states participating in this new cap and trade program (h/t Adam Zemel at the BT blog). The evolving performance of RGGI should add weight to the argument that cap and trade is simply not up to the challenge of reducing greenhouse gas emissions. Here is an excerpt from the NYT article:

The program is due to get off the ground in nine days, but already there are worries that it may fail to reduce pollution substantially in the Northeast, undermining a concept that is being watched carefully by the rest of the country, by Congress and by European regulators. . .

The concept has been praised by environmentalists and state officials. But the emissions cap was based on overestimates of carbon dioxide output, which has dropped sharply from 2005 to 2006 and is on a lower trajectory than anticipated.

This means that there are more emissions permits available than emissions (can you say ETS Phase 1?).

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