informationliberation
The news you're not supposed to know...




An Introduction to Austrian Economics: Understand Economics, Understand Everything
The Century of the Self: The Untold History of Controlling the Masses Through the Manipulation of Unconscious Desires
The Disappearing Male: From Virility to Sterility

The Obama Deception: The Mask Comes Off
Operation Gladio: The Hidden History of U.S. Sponsored False Flag Terrorism in EuropeThe New American Century: The Untold History of The Project for the New American Century
(more)
Article posted Feb 28 2010, 8:13 PM Category: Economy Source: The Telegraph Print

Flashback: Carbon trading can be used to establish a new world order, become world reserve currency - Rothschild Vice Chairman

"When an individual receives an electricity bill, they will come to know what the cost of turning on the gas or a light was to the environment."
By Simon Linnett, 31 Jan 2008


Simon Linnett, Executive Vice-Chairman of Rothschild, has called for a new international body, the World Environment Agency, to regulate carbon trading.

In a recently published paper, Trading Emissions, for the Social Market Foundation, Mr Linnett argues that the International problem of climate change demands an international solution.

Unless governments cede some of their sovereignty to a new world body, he says, a global carbon trading scheme cannot be enforced and regulated.
"An urgent global response." This was how Nicolas Stern described the problem of carbon dioxide emissions, in his recent review of the economics of climate change. The sense of an impending crisis infuses our all debates on this issue.

The human causes of climate change are now well established. The overall measures we must take - a reduction of our emissions - is painfully obvious.

But like a group of rabbits caught in the headlights, our actual means of escape remain unclear. We know what our end goals are, but how do we get there? How can governments achieve delivery?

The first step must be to recognise the scope of the problem. Unlike other pollutants, such as litter or nuclear waste, CO2 emissions have impact on a global level - and only on a global level.

This means we have to deal with the issue internationally. The problem is literally too big for any one country to handle. Old alliances, divisions and 'special relationships' are a meaningless hindrance.

I believe it is essential that governments and the private sector work together to solve the problem. As a banker, I suppose I would say that, but only such a partnership will we be able to harness what Al Gore called the multitude of little solutions, which all add up to a better outcome.

Only the private sector can successfully develop those solutions, but only governments can provide a framework for them to be applied internationally.

As a banker, I also welcome the fact that the 'cap-and-trade' system is becoming the dominant methodology for CO2 control. Unlike taxation, or plain regulation, cap-and-trade offers the greatest scope for private sector involvement and innovation.

Furthermore, taxation and regulation can only be levied at local or national levels, whereas cap-and-trade can operate on a global level. And remember, the problem is global.

But for the private sector to participate enthusiastically in a global carbon trading market, governments must collectively establish a robust framework within which trading can occur. It must be long, loud and legal:
  • Long: it is going to be around for a long time;
  • Loud: it will be the dominant mechanism for sponsoring changes in behaviour and we are going to make this perfectly clear to the world's people; and
  • Legal: we will enforce it through law.
A key implication of creating a legal yet global system of trading, is the loss of sovereignty it implies. Governments must be prepared to allow some subordination of national interests to this world initiative, on the issue of emissions. This need not mean a new system of government, above individual nations.

But it would mean a change to the way treaties are agreed and worded. Instead of saying "we will cut emissions by x per cent by date y" (pledges which are inevitably broken), such statements will have to morph to "we will make our contribution to a scheme which cuts, across certain industries and gases, emissions by x per cent by date y."

The European nations already do this, on certain issues, yielding sovereignty to the EU. And in time, the EU itself will eventually have to yield to a larger body - one which includes the economic powerhouses of India and China.

The cynicism that greets such programmes is well known, since the Asian economies seem bent on rapid expansion. However, I believe that both India and China will soon recognise the benefits of joining a global carbon trading scheme.

First, a properly constituted, one-member-one-vote system would mean that they have a proper 'say'. More importantly, since the allocation of the emissions cap might trend towards recognising world populations rather than current levels of emission, both countries would stand to gain a great deal.

If emissions trading could expand into different areas of economic activity, so too could its message. When an individual receives an electricity bill, they will come to know what the cost of turning on the gas or a light was to the environment.

Perhaps they will gain a new appreciation of their burden on the broader world. Similarly, if the scheme were to expand geographically to include India, China and, ultimately, the US, so too could the prospect be realised of such allowances becoming the reserve currency of the world, taking over that role held for most of the 20th century by gold.

So emissions trading could establish a new world order for a sustainable planet, one based on the sharing of the earth's ability to absorb harmful emissions. To allocate that 'resource' fully and properly will, in turn, require resourcefulness and imagination across the globe.
  • Simon Linnett is an Executive Vice Chairman of Rothschild. He has enjoyed 25 years of privatisation and PPP experience with the Bank, leading that effort for the majority of that time.

    For the last 10 years, Simon has been in dialogue with both UK and, more recently, EU administrations about the future evolution of emissions trading of which he has long been a proponent. This paper represents his personal views only.





Latest Economy
- Obamacare Architect Says Society Would Be Better Off If People Only Lived To Age 75
- Elizabeth Warren Says US Has "No Future" If Free-Market Embraced
- Cost of Renouncing US Citizenship Goes From Free In 2010 to 450$, And Now It's Been Jacked to $2,350
- Colorado's Illegal Pot Market Thrives
- Neighborhood Bully - America Recklessly Throws its Weight Around
- Doug Casey on the Phil Donahue Show (1980/1981)
- Yellen: Where No Man Has Gone Before
- Block on CNBC: Privatize the Roads









No Comments Posted Add Comment


Add Comment
Name
Comment

* No HTML


Verification *
Please Enter the Verification Code Seen Below
 


PLEASE NOTE
Please see our About Page, our Disclaimer, and our Comments Policy.


FAIR USE NOTICE
This site contains copyrighted material the use of which in some cases has not been specifically authorized by the copyright owner. Such material is made available for the purposes of news reporting, education, research, comment, and criticism, which constitutes a 'fair use' of such copyrighted material in accordance with Title 17 U.S.C. Section 107. If you wish to use copyrighted material from this site for purposes of your own that go beyond 'fair use', you must obtain permission from the copyright owner. It is our policy to respond to notices of alleged infringement that comply with the DMCA and other applicable intellectual property laws. It is our policy to remove material from public view that we believe in good faith to be copyrighted material that has been illegally copied and distributed by any of our members or users.

About Us - Disclaimer - Privacy Policy



Advanced Search
Username:

Password:

Remember Me
Forgot Password?
Register

Judge Says Raid On Twitter User Perfectly Fine Because Officers Can Enforce Non-Existent Laws Provided They Have 'Probable Cause' - 09/22Is that a Drill Sergeant or a Police Officer? Belligerent Cop Loses it On Man for Knowing His Rights - 09/22Florida Deputies Gun Man Down as His Son Tries to Explain that He's Deaf - 09/23Former Cop, Infamous for Killing a Family's Dog, Has Epiphany About the Broken Police System - 09/22Dimwitted Cop Claims it's Illegal to Record his Ticket Blunder - 09/23Baltimore Cop Suspended after Video Showing him Punching Man Proves he Lied in Report - 09/22Man Fined $162 After Stopping Police For Illegal Turn - 09/23Elizabeth Warren Says US Has "No Future" If Free-Market Embraced - 09/22

Rialto, CA Police Made to Wear Cameras, Use of Force Drops by Over Two-ThirdsCop Who Karate Chopped NY Judge In Throat Gets Off Scot-FreeFlorida Cop Smashes Compliant Woman's Face Into Car -- "Maybe Now You Can Understand Simple Instructions"VIDEO: Lapel Cam Reveals A Day In The Life Of A U.S. Police Officer (Tasing, Beating, Breaking & Entering, Stomping On Heads... and Laughing About It)Caught On Tape: Officer Sucker Punches Inmate In Face, Files Report Claiming 'Self Defense'Insult Person On Twitter, Go To JailSWAT Team Brings TV Crew To Film Raid Against Threatening Internet Critic -- Raids Innocent Grandma InsteadCop Karate Chops NY Judge In The Throat
(more)

 
Top