In Obama’s recent address to Congress he called for the submissions of Cap and Trade policies for the United States of America. It looks as if by the end of 2009 the USA will be the last developed country to adopt a carbon trading scheme, but what will this scheme look like and what will be done with the money earned from the selling of permits?
In short, a Cap a Trade policy puts a cap on the amount of carbon industries and organizations are allowed to expel. These companies would buy pollution permits from the government, and can then buy and sell these permits amongst themselves, so that companies who can reduce more efficiently can sell excess permits to those who are unable to reduce in a financial feasible manner.
The government, as a result, will collect vast sums of new funds from the selling of these permits through the creation of a regulated carbon-polluting market.
There are a three different philosophies at the moment on what should be with this new revenue …read more of The Cap and Trade Conundrum here