Cap-and-trade is dead in the US, killed by an uninterested Obama Administration and the Republican mid-term victories. It was always a kludgy idea, made worse by being voluntary not mandatory and also easily gamed by investment banks who just viewed it as one more potential revenue stream to be manipulated. Obama of course has shown little interest in remediating climate change beyond his usual eloquent speeches which somehow never translate into action.
The Chicago Climate Exchange (CCX), the U.S.’s only emissions credit exchange, will close shop by year’s end, citing a lack of legislative interest.
The exchange suffered a blow when it became clear no meaningful climate legislation would make it through the Senate, and this month’s elections sealed its fate.
“The bulk of the users have said to us that they really don’t want to continue to trade voluntarily in the absence of any credit for their work by the current administration,” Sprecher said. “The real value of that business is what’s going on in Europe.”