does it work as a way of dealing with climate change?
Trading, whether between companies or countries, only works if emissions are reduced enough to contain global warming. Creating a market does not, by itself, reduce emissions. Moreover, the benefits could be severely limited if trading is not comprehensive. As important as what or who is included is what is not included. Carbon dioxide represents only part – albeit a crucial part; more than 70% – of all greenhouse gases. Furthermore, the US, the world’s largest CO2 polluter, excluded itself by choosing not to ratify Kyoto. And while the US is the biggest emitter today, China, which is projected to exceed the US in emissions by mid century, has no obligation to reduce emissions. Even within trading schemes such as the ETS, whole sectors’ emissions are excluded, such as transport, homes and the public sector. Aviation is the fastest-growing source of CO2 emissions, and some experts have calculated that if it were included, the UK’s entire allowance would soon be used up. Critics say trad
