The Cap and Trade Pollution Solution

RainforestCarbon trading is touted as an environmental revolution, but what will it take to make it profitable and save the earth? Drew Turney finds out more.

If you don’t know what the term ‘carbon market’ means, you’ve not only been living under a rock for the last three years, you’re about to be swept up in the most transformative movement to hit energy provision and financial markets since the steam turbine.

A lot of us understand the vague idea of letting the power of market forces bring the levels of air pollution down, as long as the financial incentive flows in the right direction, but what does it all mean for power consumers, producers and the industry as a whole? Is it really going to save the world or is it just the new gold rush now the dotcom boom is a distant, painful memory?

To understand carbon trading, it’s just as important to understand what it isn’t. In the days before economic rationalism, an environmental crisis would have resulted in governments simply restricting companies and industries from polluting as much, but two downsides make such totalitarianism unpopular today.

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