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Originally Posted by xoxoxoBruce
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The EU Carbon Emissions Trading Scheme
Has the government, any government, ever come up with a scheme that the utilities haven't been able to turn to their advantage?
The upside of the soaring credits value/cost, is they may be willing to spend more on reducing carbon spewing.
Being only vaguely aware of the system and completely lost on the characters, makes it hard to follow.  |
Setting aside the overhead of managing/policing this, I guess the permits should have had some base value linked to the price of energy at the time of issue. Trades would still be done at the market price, but the difference between base price and elevated price would be passed to a third party/body that would ensure that this element was used to improve emissions rather than see it go straight in the pocket of the company selling its spare capacity.
Otherwise it needs a re-think to uncover a better and more direct way of encouraging companies to improve/reduce emissions than relying on the current trading solution which now looks very flaky.