So far, the only alternative to Cap & Trade schemes seems to be plain taxation of emitted GHG’s.
Still, there are several problems associated with taxes:
- An expected tax might simply be included in the production price, hence potentially triggering inflation and generating immediate windfall profits for the emitters.
- Choosing and measuring emissions subject to taxation could also [...]

An attempt to link financial markets rescue to carbon offsets, via the securitization of carbon credits into Carbon Backed Securities (CBS’s) and the use of those to fuel interbank funding operations.

This post attempts to see beyond the Climate change emotional ‘layer’ and tries identifying the basic mechanics at stake in Copenhagen talks. Will the tCO2e unit become the long awaited new ‘gold standard’?

One key point associated with a Cap & Trade scheme is that concerned corporations are actually in a position to trade their granted envelope of allowances on specialized climate exchanges (Bluenext or ECX). Obviously, this is what happens in most cases, leading to some bearish pressure on the ETS spot valuation, mostly at the beginning [...]