This so-called cap-and-trade program, modeled after a U.S. effort to control acid rain, set carbon dioxide limits for more than 11,000 facilities in sectors such as power, paper, cement, and, later, aviation. It was a great idea that helped the European Union overcome a decade-long stalemate on a carbon tax, but it had a fundamental flaw: The permit levels were determined in prosperous times, and there was no plan for reducing supply in the event of a sharp fall in output.
When the global economy went into a funk in 2008, emissions plummeted, sending prices for permits into a tailspin. The problems were aggravated by imports of cheaper credits from outside the region issued under a carbon-reduction program overseen by the United Nations. By 2013 the cost of emitting a ton of carbon had tumbled from a pre-crisis high of €31 ($38) to just €2.50.
Esta historia es de la edición January 25, 2021 de Bloomberg Businessweek.
Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 9,000 revistas y periódicos.
Ya eres suscriptor ? Conectar
Esta historia es de la edición January 25, 2021 de Bloomberg Businessweek.
Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 9,000 revistas y periódicos.
Ya eres suscriptor? Conectar
Instagram's Founders Say It's Time for a New Social App
The rise of AI and the fall of Twitter could create opportunities for upstarts
Running in Circles
A subscription running shoe program aims to fight footwear waste
What I Learned Working at a Hawaiien Mega-Resort
Nine wild secrets from the staff at Turtle Bay, who have to manage everyone from haughty honeymooners to go-go-dancing golfers.
How Noma Will Blossom In Kyoto
The best restaurant in the world just began its second pop-up in Japan. Here's what's cooking
The Last-Mover Problem
A startup called Sennder is trying to bring an extremely tech-resistant industry into the age of apps
Tick Tock, TikTok
The US thinks the Chinese-owned social media app is a major national security risk. TikTok is running out of ways to avoid a ban
Cleaner Clothing Dye, Made From Bacteria
A UK company produces colors with less water than conventional methods and no toxic chemicals
Pumping Heat in Hamburg
The German port city plans to store hot water underground and bring it up to heat homes in the winter
Sustainability: Calamari's Climate Edge
Squid's ability to flourish in warmer waters makes it fitting for a diet for the changing environment
New Money, New Problems
In Naples, an influx of wealthy is displacing out-of-towners lower-income workers