If we don’t learn from history, we are doomed to repeat it. Yet when it comes to reducing carbon in the atmosphere, the current solutions fail to recognize what has worked in the past. So, what can we learn from the pollution reduction success stories in our history? What can those successes tell us about the shortcomings of existing strategies like cap-and-trade and carbon taxes? Why do our current methods of carbon pricing fail so spectacularly?
Aldyen Donnelly is Nori’s Director of Carbon Economics. She has been working to develop market-driven strategies for reducing carbon in the atmosphere since the mid-1990’s, creating a consortium of Canadian energy companies that developed the world’s first ‘emission reduction credit’ or ‘ERC’ purchase agreement to finance soil carbon sequestration as well as the first ERC-financed carbon capture and storage project.
Today, Aldyen joins Ross, Christophe and Paul to explain the fundamentals of cap-and-trade, discussing why allowances don’t represent a real reduction in emissions. They cover the inaccuracy of carbon prices as set by cap-and-trade markets and the Nori team’s eye-opening experience with the CarbonSim trading simulation game. Aldyen speaks to what we can learn from successful pollution reductions in history, describing how market competitors will find ways to innovate if we order fossil carbon reductions in the energy supply chain. Listen in for Aldyen’s insight on the failure of carbon taxes and learn how such measures have resulted in a negligible reduction in emissions while shifting the tax burden from the rich to the poor.
[3:48] The fundamentals of cap-and-trade
[8:23] Why cap-and-trade doesn’t work
[12:27] Aldyen’s take on the ‘success’ of RECLAIM
[17:12] Why carbon pricing set my cap-and-trade markets is inaccurate
[20:36] The Nori team’s experience with CarbonSim
[24:21] What we can learn from successful pollution reductions in history
[28:42] Why a carbon tax doesn’t work to reduce emissions
[31:00] Aldyen’s top insights for government officials
[32:53] Why carbon taxes don’t change behavior
[38:29] How carbon taxes have impacted Sweden, Denmark and Norway
[41:58] Aldyen’s view on British Columbia’s carbon tax