re: #43 LudwigVanQuixote

And even worse, it encourages rapidly developing polluters to pollute more for us, while giving the opposition (who has as a party plank that this isn’t real) ammo to say “you got your compromise.” All, when it does nothing, and the problem grows.

Is this really the case if the program is managed properly:

1. Limit the number of available credits (and reduce them annually), avoiding a repeat of EU ETS phase I.
2. Sell them by auction (no free hand-outs).
3. Impose a large financial penalty for polluters who don’t meet their targets.

Where there was an incentive to pollute was in the Kyoto Protocol CDM, as projects were approved which arguably should have failed the “additionality test”.