Cap & Trade Explained (Video)

“Cap & Trade” is ostensibly a policy for controlling climate-change. Like many other bright ideas, while it is technically feasible on paper, it is unlikely to satisfy any of its purported ecological goals when actually used. Like communism or capitalism, it’s a system that only works if human beings don’t get involved. It won’t even get out the door before it’s corrupted to serve power and generate wealth for the already wealthy instead of actually controlling carbon output.

This may not be immediately obvious because the basic system seems quite sound: Carbon output is ever more stringently restricted until the desired level is achieved. Countries that don’t use their carbon units can sell them to countries that need them, but the total amount of carbon emitted must remain below the cap.

However, what happens if a country doesn’t comply? What are the fines? The carbon goes into the atmosphere regardless of fines. Voluntary capping doesn’t seem very tenable. And then there are the loopholes; oh the loopholes! All the great ideas of the last economic crash applied to the next bubble: Carbon credits.

If you’ve got ten minutes, check out this film that explains many of these loopholes and how the system would actually be implemented, which doesn’t sound at all how its proponents are selling it.

The Story of Cap & Trade by Annie Leonard (YouTube)