The environmental charity said not only does the current system of trading permits fail to tackle climate change, it is also financially dangerous. Currently only Europe has an emissions trading scheme, where companies can buy and sell permits giving them the right to pollute the atmosphere with carbon dioxide.
Sarah-Jane Clifton, author of the report, said the growth of a secondary market in carbon trading involving “financial speculators and complex financial products, carries a risk that carbon trading will develop into a speculative commodity bubble”.
The brokerage system was set up with the help of ENRON's Ken Lay. Of course carbon trading will develop into a speculative commodity bubble. It is designed to do just that.