The carbon cap-and-trade plan is currently the most popular market-based climate change solution. The details of a carbon cap are rather complicated, and it would clearly need careful regulation and oversight to be effective. For those of us who don’t want to wade through pages of jargon, here’s a simple explanation of how a carbon cap could create green-collar jobs.
A carbon cap-and-trade plan like this is included in the Waxman-Markey bill (American Climate and Energy Act of 2009), which is currently in Congress, and has gone farther than any similar legislation. President Obama, Al Gore and a number of environmental groups, including Audubon and Environmental Defense, have voiced their support for the bill. However, some groups, including Greenpeace and Rainforest Action Network, are concerned that the bill has become watered down and gives too many allowances to polluters.
Is is safe to say that Waxman-Markey should be strengthened before it passes and definitely cannot be weakened further.
In any case, it is encouraging to see that a market-based GHG reduction plan could boost the economy, if an effective version were passed.