ONE of the world’s flagship projects to tackle climate change has reached crisis point. The scheme, which allows European companies to trade their emissions of carbon greenhouse gases, was designed as a cost-effective, economically liberal solution to global warming. Now unforeseen market forces and the self-interest of some member governments are in danger of wrecking the dream.
That at least is the fear of climate negotiators, who are reeling from a week of bad news that suggests the very notion of trading in carbon permits may be impractical. However, many traders and analysts say the scheme still has a bright…
