“Pope Francis, in his highly anticipated call to action against climate change, took an unexpected swipe at the cap-and-trade systems used in both California and Europe to control greenhouse gases. They may sound good, the pontiff argued. But they won’t work.” – David R. Baker
CapGlobalCarbon supporters have been encouraging California’s Cap & Trade program to implement market design more in line with a Cap & Dividend system, which would address some of the Pope’s criticism. Although the California system includes an escalating price floor on permit prices, and State legislation requires funds be used to assist disadvantaged communities, the type of system CGC advocates would be more effective at linking the needs of the poor and climate protection. Our analysis of the European Emission Trading Scheme is similar to that of Pope Francis and would like to see it replaced or heavily modified into an upstream cap on fossil fuels where the amount of licences is based on climate science.