Sep 9, 2008

What Is The ETS Going To Cost?

Both the NZ Herald and Dominion Post have articles today on this topic. Incredibly no one can give an accurate answer to this question, because we don't really know what the price of carbon is going to be. What we do know is that the decision to forbid trading in Russian sourced AAU credits will increase the cost considerably. Green Co-leader Jeanette Fitzsimons is defending this change in the Dominion Post. Her argument sounds most credible but don't forget two things. Russia joined the Kyoto Protocol on the basis that its credits would be accepted. Without Russia there would be no Treaty. Also don't forget the "hot air"that the EU has benefited from. What happened to Russia happened to many countries that are now EU members. Has Europe offered to forgo this benefit? No way.