Does the Lieberman-Warner Climate Security Act contain a loophole that would allow financial speculators to manipulate the price of carbon allowances, escalate the cost of U.S. emissions reduction efforts, and hinder the development of clean energy?
It’s a given that speculators will trade carbon allowance credits and try to make money doing so. Will the system be able to be gamed? Well, just look at the oil market now. Speculators certainly are driving those prices up.
if the bill has a loophole, traders will find it.