£1bn windfall for carbon trade firms (BBC) {CO2/emissions trading}

[eppur_se_muova]

{That's 1 billion pounds sterling, in case you're seeing some strange character}

Roger Harrabin
BBC News environment correspondent

Power firms could make a £1bn windfall profit from the EU Carbon Emissions Trading Scheme, BBC News has learned.

The windfall is likely because many firms have benefited from increases in electricity prices brought about by the scheme without needing to make any extra investment in return.
***
Part of the problem, he said, is that firms have been given, free-of-charge, the carbon emissions permits on which the scheme is based. This, he explained, is like the government giving energy firms free money.
***
The WWF pressure group called it a scandal and demanded a windfall tax to re-direct the profits into energy conservation.

The Conservatives said it was an example of government incompetence.
***
more: http://news.bbc.co.uk/2/hi/science/nature/4961320.stm

Remember that this kind of scheme is *exactly* the sort of thing that Bush**co regards as a "solution" to greenhouse gas production! Will exactly the same thing happen in this country? Gosh, I can hardly wait to see.:sarcasm:

[rfkrfk]

1. carbon trading, wealth transfer from poor to rich

the next step is forcing the poor to
buy credits from the rich

Robin Hood would not be pleased
this will get very ugly.
when someone has his hand in someone else's wallet,
he won't willing give that up

[rfkrfk]

2. this is outrageous

the more I think about this, the angrier I get.

most things are priced on the margin.
the 'going' carbon-emission price,
will become part of the opportunity cost.

the emission-credit giveaway, is just not connected
to the marginal opportunity cost.

everybody pays the going rate for carbon,
but the 'before v after difference' revenue does not go to the gov't.

if the gov't would change to an auction,
carbon trading becomes just like the VAT,
except it was never voted by the legislature as
a tax

If you drive a car, I'll tax the street,
If you try to sit, I'll tax your seat.
If you get too cold I'll tax the heat,
If you take a walk, I'll tax your feet.