Mongabay: Carbon tax will ease transition to sensible climate policy

The management of carbon dioxide and the climate represent both an economic development challenge and the ecological problem of the next hundred years. Energy use, economic success and carbon dioxide emissions are, currently, intertwined. A carbon market that represents the true cost of energy and the disposal of our waste products in the environment is a potential long-term policy mechanism for carbon dioxide management. However, the strong interconnection between carbon dioxide emissions and economic success distinguishes the carbon market from other environmental markets used to control pollution. Therefore evolution to that solution is not straightforward; there are a series of necessary steps needed to develop a market.

A number of “carbon markets” have been started, for example the European Union Emissions Trading Scheme (EU ETS), and a number of new markets are proposed, for example the Western Climate Initiative in the United States. Point Carbon provides news and analysis of carbon markets. For these markets to achieve their ultimate goals of valuation of carbon dioxide emissions and reduction of carbon dioxide emissions, significant evolution and expansion of the markets must be realized. This article explores some of the hurdles that are necessary to cross in order to realize a successful CO₂ market.

Mongabay