The Center for American Progress has put out a clear and concise description of "What Is Cap and Trade, and How Can We Implement It Successfully?"
Cap-and-trade 101 1
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Posted 3:55 PM on 22 Jan 2008
by Joseph Romm -
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Joseph Romm is the editor of Climate Progress and a senior fellow at the Center for American Progress.
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tigerlincoln Posted 6:49 am
05 Feb 2008
It provides financial incentive to the owners of companies (their shareholders) to reduce their carbon footprint.
It will lift some fiscal pressure from shareholders on company leadership for short-term returns. This, in turn, can help them to make the longer-term decisions necessary for structural change.
Both wealthy and middle class people can benefit. Basically anyone who invests. And that's something both political parties can get behind!
It will increase investment (even from green investors) in companies that actively work toward reducing their carbon footprint. And provide incentive to companies who currently don't have plans do do so.
It opens the door and gives a voice to agents of change inside the power structure of energy, automotive and oil companies (if they invest in them).
If done right, it won't cost a thing. Dividends can be paid for with the money generated from the cap and trade system.
It provides the carrot that's missing with the stick of the cap and trade system.
Founder, Buzz Factory, Inc.
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