EU Carbon Trading Not Cutting Carbon

February 11, 2009

Email this story Print this post Add your comments

Business week reports that despite the acclaim of Europe’s climate-change policies, they aren’t actually cutting carbon.

While the EU’s Carbon-Trading policies allow companies to buy and sell permits, the number of those permits is not actually being reduced. But because governments can tout the job creation, business development, and energy security benefits of renewables; and industry has lobbied for a flood of cheap permits – nobody has an incentive to change things.

Green Party officials in Germany, however, are starting to discuss the fact that issuing carbon credits – while creating a market – does not reduce carbon. They point out that despite its many benefits, investing in renewable energy is not the most cost-efficient way to cut carbon. Retrofitting buildings, for instance, would do more to reduce carbon emissions than building windmills.

But until governments and industry are willing to reduce the number of credits and drive up the cost to where investing in cleaner behavior is cheaper than buying permits to pollute, the climate will continue to get warmer.

Last December, a GAO report found that Europe’s cap-and-trade system had created “a functioning market for carbon dioxide allowances, but its effects on emissions, the European economy, and technology investment are less certain.”

Email this story Print this post Add your comments

Advertisers

Enhance Sustainability. Improve Profitability.

Learn how at the SAP Sustainability Resource Center. >>

Unclear about the EPA's new GHG Rule?

Learn how it could affect your business. >>

EPA mandatory emissions reporting starts Jan 1st

CSA Standards can help your organization get ready for compliance. Find out how. >>

Survey Results: Product Environmental Compliance Best Practices

How to achieve compliance at a significantly lower cost. Download the full report. >>

Join the Discussion

Recent Daily News [ see all ]

11/20/2009
11/19/2009
11/18/2009

Charts [ see all ]

European Paper Industry Cuts CO2 Emissions by 42% since 1990

S. America Takes Most Urgent View of Copenhagen Talks

Nike Tops Annual Climate Action Scores

Oceans May Trap more Carbon than Forests

Jobs

View All Jobs >> Post a Job >>

Comments and Discussions

Trade Association on Trade Group on EPA Chemical Regs: ‘If Everything is a Priority, Then Nothing is a Priority’
"Seriously… that..."

Gary Markowitz on Supermarkets Tackle Emissions Reductions, Fuel Efficiency
"Supermarkets waste over 10 percent of their energy through improper..."

peter in ireland on Ontario May Follow California’s Lead on TV Energy Efficiency
"Governor Schwarzenegger is shooting himself in the foot! 1...."

Environmental Leader on S. America Takes Most Urgent View of Copenhagen Talks
"The survey respondents (the PDF report mentions 4,000 respondents in 38..."

Jake on UPS Trying New Hydraulic Hybrid Trucks
"A point of clarification: the Reuters press release referenced herein reports that 20 UPS will purchase..."

Custom Organic Shirts on S. America Takes Most Urgent View of Copenhagen Talks
"90% of North Americans believe it is urgent to get a global climate..."

peter dublin on California City’s Green Building Ordinance Applies to Commercial Buildings
"Why energy efficiebnt regulation on buildings –..."

Environmental Leader