When “good guys” like the Deutsche Bank get raided after being suspected of incorrectly claiming some €211 million in tax rebates from the trade in carbon tax certificates, then it’s time to also suspect that the days of this nonsensical European emissions trading have finally reached their end.
In case your were wondering: Emissions trading or cap-and-trade is a market-based approach used to control pollution by providing economic incentives for achieving reductions in the emissions of pollutants. A central authority (usually a governmental body) sets a limit or cap on the amount of a pollutant that may be emitted. The limit or cap is allocated or sold to firms in the form of emissions permits which represent the right to emit or discharge a specific volume of the specified pollutant. Firms are required to hold a number of permits (or allowances or carbon credits) equivalent to their emissions. The total number of permits cannot exceed the cap, limiting total emissions to that level. Firms that need to increase their volume of emissions must buy permits from those who require fewer permits.
Well, it turns out that the European “carbon market” is now flooded and recent EU efforts to fix the system have only served to highlight how lame it is, yada, yada, yada, thus further eroding the price of a ton of carbon dioxide emissions permitted. Government intervention at its best again, in other words.
You know how that old saying goes: “The nine most terrifying words in the English language are ‘I’m from the government and I’m here to help.’
EU-Klimakommissarin Connie Hedegaard will den Preisverfall der CO2-Zertifikate stoppen, der nach ihrer Meinung ein System unterminiert, das einst als Meisterlösung für die weltweite Klimaverschmutzung gepriesen wurde.