Carbon trading collapses

In: Uncategorized

27 Oct 2010

The Chicago Climate Exchange, the pioneer of the idea of carbon trading, is to stop trading in carbon emissions allowances. This follows the failure of cap and trade legislation to pass in the senate in July. It will continue to trade in carbon offsets for at least two more years.

Chicago’s problems follow a scandal in the European emissions trading system earlier this year. The Nordic and French exchanges suspended trading when it emerged that trading certificates had been illegally “recycled”.

For some reason these developments have received little publicity.

* For a more political discussion of the dangers of focusing on carbon emissions see Rob Lyons’ Want to fix the climate? Cut the carbon obsession in today’s spiked.