The Washington Post reports today that the House Energy and Commerce Committee approved a bill that would establish a cap and trade system for limiting carbon dioxide emissions. A cap and trade system is a market-based approach designed to allow utilities and other major emitters of carbon dioxide to find the cheapest way to reduce their emission. It involves setting a cap on emissions and then issuing allowances to emitters. Many experts support auctioning off those credits, but the bill gives 85 percent of them away.
In a similar European cap-and-trade system, giving the allowances away seems to have led to windfall profits for utilities.
President Obama originally supported auctioning the allowances, and budget projections included revenue from such auctions. That money would have been used for clean-energy R&D, and for offsetting energy price increases causes by the cap on emissions.
Don’t settle for half the story.
Get paywall-free access to technology news for the here and now.
