The UK Carbon Trading Market collapsed, with the credits dropping to almost zero. Now the Governor wants to link California’s economy to a collapsed emissions trading system.
California hopes to link its planned emissions trading system to the European Union's market, boosting efforts to build a global mechanism to fight climate change, aides to Governor Arnold Schwarzenegger said on Thursday. Details here.
The ETS market soared to 30 Euros per ton when it first opened in 2006. It is now a 1.3 Euros per ton. The last trade was on 7 December 2006. Not an active market. One analyst thinks that US entry in to the ETS market will save it. So, now California is coming to the rescue of a failed EU Carbon Trading. In an earlier post we revealed that PERS was planning on investing in the carbon market. Would you be ready to invest your PERS retirement in a failed carbon trading system? Really?
UPDATE: The EU is hoping California will save their failed carbon trading scheme. This from Planet Arc.
The most populous US state, California passed last year the first significant law in the United States to curb emissions of greenhouse gases, a move Europeans hope will pre-empt national US action.
"We're looking to be a model for the United States, which is also what the Europeans are hoping," said Linda Adams, secretary of the California Environmental Protection Agency, after meeting EU and European state officials on a fact-finding trip.
"There's a sense of urgency in Europe."