Costing The Earth

It sounded like the perfect answer. Carbon trading could halt global warming, boost 'green' investment in the developing world and make money for city traders. Four years on and Europe's complex system to cut emissions from our factories has comprehensively failed. Despite vast amounts of money and effort being thrown at the scheme the current phase of carbon trading has, according to one report, cut emissions by a third of one per cent. In 'Costing the Earth' Tom Heap asks if capitalism's big idea has a future or just a murky past.Back in the 1990s, in a desperate attempt to get the United States to sign up to binding reductions in the emission of greenhouse gases the concept of carbon trading was developed. The idea was that polluting industries would be forced to buy the right to pollute in the form of carbon credits. If they wanted to pollute more they'd have to pay. If they polluted less then they could make a profit by offering their surplus credits to other businesses. Over time the number of credits w