Both Carbon Trading Profits and Emissions Soar
Despite 80% growth in carbon trading [ark] in the past year, including windfall profits [ark] for some, carbon markets have yet to lead to actual emission reductions. Indeed, carbon and other emissions continue to soar [ark | search].
As I have written previously, while profiting from efforts to reduce emissions may be useful to some degree, the cap and trade approach is by no means sufficient [ark]. At some point emissions need to be reduced at a cost to society because it is necessary and the right thing to do.
A much more suitable and less complex market based approach to reducing emissions quickly is a global carbon tax [search]. Such an approach need not be onerous, as Climate Ark's Lincoln Plan demonstrates. If is far preferable in terms of rapidly and clearly setting a price on carbon [search] to tax energy sources according to their carbon content than to expect carbon markets to do so. While carbon markets may have a role, we simply do not have time for them to develop to bring about necessary major emission reductions. We know a carbon tax will reduce emissions.