The latest figures showing a rise in carbon emissions for European heavy-emitting industries has refuelled the debate over whether the world’s biggest cap and trade scheme is working to cut the region’s greenhouse output or not. With efforts in other parts of the developed world to institute carbon pricing systems subject to all sorts of claim and counter claim, some perspective around the latest EU figures might be valuable.
Given the ongoing impact of the Great Recession it is only going to be over many years that evidence of the EU ETS working to reduce emissions or otherwise will emerge beyond doubt. The global financial crisis and the ensuing worldwide recession that has bitten hard in Europe muddies the waters considerably. But there is evidence already to suggest that the scheme is working to cut CO2 emissions. (Carbon Positive)