Tuesday, November 09, 2010

The EU goes on and on

The air has been taken out of the carbon trading market, says Fox News. The only national carbon trading market in the US will close its doors next month, due to stalled legislation in Congress and Republican gains in the midterm elections

Yet we also hear that the EU has said it will sell 300 million carbon-dioxide permits by the end of 2012 from a reserve to spur clean-energy projects and vowed to "minimise" the impact of the sales on market prices.

The European Investment Bank will sell the €4.3 billion ($6 billion) of CO2 allowances from the post-2012 reserve for new companies in the EU emissions-trading system and disburse the revenue via national governments "to aid projects for carbon capture and storage and renewable energy."

Let the market rule and trade is worth nothing. Give it to the regulators and they can magic $6 billion out of thin air (which we then have to pay). There has to be a lesson there.