How emissions trading at Paris climate talks has set us up for failure
he Paris Agreement has mostly been greeted with enthusiasm, though it contains at least one obvious flaw.
Few seem to have noticed that the main tool mooted for keeping us within the 2℃ global warming target is a massive expansion of carbon trading, including offsetting, which allows the market exchange of credits between companies and nations to achieve an overall emissions reduction.
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But will these carbon trading and offsetting tools save the planet?
The short answer is no. These tools will not save the planet from overheating. In fact, they might be counter-productive to the goal of limiting warming to 2℃, never mind the unrealistic 1.5℃ ambition.
Carbon markets basically function as a delaying tactic. It’s been that way ever since their first inclusion in the 1997 Kyoto Protocol. The EU-ETS for instance, the first, biggest and most significant of all trading schemes, simply hasn’t delivered. It took the best part of ten years for it to start after Kyoto, and once in action it was riddled by fraud, corruption, over-allocation of permits and perverse incentives for carbon offsetting – all contributing to the fact that the price for carbon is so low that nobody cares.
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