Emissions permits: Selling pollution

Auctioning carbon credits is the logical next step in the EU’s fight against global warming. European business fears being put at a competitive disadvantage. But, if well designed, auctions will reinforce Europe’s attempt to become the globe’s leading climate change fighter. If the cash raised is recycled into lower taxes, the overall economy will benefit too. Europe’s emissions trading market, launched in 2005, got off to a rocky start. Governments handed out too many carbon credits – and gave...