Saturday, May 10, 2008

How does the proposed emissions trading scheme work?

I want to look into the detail.

Kyoto is market-based. Business ideology played a huge role in that. Trade-able carbon credits were / are supposed to send market signals to producers of carbon so they can either produce less carbon or buy tradable emissions credits to cover the excess beyond whatever level of carbon they might be allowed to produce without liability.

I don't know how this has been proposed to work here in NZ. I'm aware of debate about who holds the credits, but not the outcome. Clearly, some people have seen no need to either reduce emissions or to engage in the carbon "market". They seem to be hoping if they can ignore it and pull political levers instead, they can avoid any responsibility for their emissions, related carbon costs and any requirement to act to curtail emissions.

Why is that?

I want to find out so I can better distinguish between those who have legitimate issues with the proposed trading regime and those who may be seeking to shirk their responsibility to deal with their carbon emissions effectively and constructively.

Meanwhile, the ice keeps melting.

2 comments:

  1. Why is that?

    Because at the end of the day it will reduce their profits. In some extreme cases it may force them to go out of business (in which case we're all better off anyway; business which are not profitable unless they dump their costs on others aren't really profitable at all and represent a drain on society). But in most, its simply because they'll make lower returns until they adapt and think - things our ticket-clipping business owners aren't very good at.

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  2. Having spent much of Sunday evening reading the fact sheets related to the proposed ETS legislation, I'm inclined to agree. The government has caved here apparently to take away a club business and the media were using to beat them over the head. The club only has "heft" because (once again!) the wider public have no idea what the truth is. A lazy public combined with cynical misinformation - a lethal combination.

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