A reflection over performance and cap-and-trade

In Jornal de Negocios2007-01-05 Franquelim Alves claim that cap and trade of CO2 emission will delay EUs development of alternative energy sources. That is a bit odd because it is aimed at encouraging companies to straighten up their or at least decrease their fossil fuel dependence.

He uses a graph in which the increase in CO2 emissions in the US has increased less in the US than in EU during 2000-2004. Has he missed that the eco-foot print per capita of the US is twice as large as in the EU? Between 1990-1995 there was actually a decrease in CO2 emissions in EU15. I wonder what we did right then? At the same time US increased its emissions by little over 6%.

He continues to say that encouragement rather than restrictions are vital to foster innovations in sustainable energy systems. He is at least half right. I say why not use both?! Cap and trade is an American invention that first was implemented in the EU. Nowadays there also exist voluntary cap and trade in the USA. Also, plenty of states and towns in the US have started to implement their own regulations and laws to meet the requirements in the Kyoto Protocol. Notably, a group of large energy "producers" in the US has recently confronted President Bush to implement the Kyoto Protocol on federal level. I don´t know if if is out of environmental concern or that different rules in all states will make it more difficult to compete on national level in the US (and of course having to comply with up to 50 sets of rules does not anyone happy).

Alves goes on to say that one shouldn´t indiscriminately put up wind power towers or start biofuel plantations everywhere because they may have negative impact on the local environment. I couldn´t agree more. If there are environmental concerns make an Environmental Impact Assessment! If not even those that claim to take environment concerns are able to do just that it would be really tragic ...