Somebody explain how this reduces CO2..?

[thinfourth2]

I can see it increasing CO2 easily

[NorthernBoy]

That was a serious question?

OK, companies need permits to emit carbon, and spare permits can be sold. This gives an economic incentive to reduce levels, and means that everyone will try to make money by reducing CO2 output. The greater the reduction, the more credits can be sold on.

The scheme needs to be well run to work properly (not too many permits, an efficient market), but it is generally accepted that free market solutions like this work a lot better than regimes of government inspectors simply setting targets that people then miss.

It is the secondary market which is absolutely critical in this; companies for whom reduction is uneconomic can,in effect, pay other less efficient companies to make cuts on their behalf.

An added advantage is that third parties will want to speculate on the future prices of these contracts, and nice bankers such as me can sell them exotic products derived from their price.

[Jasandjules]

anonymous said:

[redacted]

Why, it's patently clear, surely, to any Eco Warrior, and they will also be clear as to why it's costing companies many millions of pounds to purchase this, which would seem to simply be a revenue raising exercise.

We'll just sit patiently and wait for one to come along, it won't be long I'm sure..........

[Guybrush]

... and reducing human CO2 emissions in this way will do nothing to alter the climate. But of course, in line with the hysteria whipped up by certain factions, this is becoming something one only dares whisper.