November 5, 2009
[efoods]The environmental charity said not only does the current system of trading permits fail to tackle climate change, it is also financially dangerous. Currently only Europe has an emissions trading scheme, where companies can buy and sell permits giving them the right to pollute the atmosphere with carbon dioxide.
Sarah-Jane Clifton, author of the report, said the growth of a secondary market in carbon trading involving “financial speculators and complex financial products, carries a risk that carbon trading will develop into a speculative commodity bubble”.
This could “provoke a global financial failure similar in scale and nature to that brought about by the recent sub-prime mortgage crisis”, she said.