Research group New Carbon Finance came out with a report today suggesting that the cap and trade policies in Europe are indeed helping to limit pollution. Total carbon output sank 3% in 2008 as compared to 2007 in European nations partaking in the carbon trading scheme.
While the global recession is cutting output, and thus reducing carbon output, their research suggests that carbon pricing policies are responsible for 40% of the fall in carbon output. The recession accounts for 30% of the fall.
New Carbon Finance chalks the decrease up to a shift in energy sources on the continent. Total electricity usage rose .3%, while emission from power sources dropped 2%. An increase in the use of natural gas, as well as slight lifts in wind, hydroelectric and nuclear power use, all contributed to lowering carbon output.
For this reason, New Carbon Finance contends that “the design of the scheme is working
as originally intended by the European Union.”
(via Green Inc.)