Climate change: cap and trade

Suzanne Goldenberg
The Guardian, Thursday 25 June 2009

The core of the American Clean Energy and Security Act is a cap and trade system that would bind the US to gradually reducing its carbon and other greenhouse gas emissions, from 17% below 2005 levels by 2020 and to 83% by 2050. This is much lower than European targets. The caps would apply to 85% of polluting industries. Regulated industries will eventually need to buy permits to put carbon emissions into the atmosphere. But at the outset, 85% of those pollution licences will be distributed free to protect consumers from steep rises in their electricity bills and protect American businesses. Remaining funds would be used to support clean energy research and adaptation to climate change in developing countries.