Climate Protection Bill

Carbon trade will give financial firms a huge potential to earn super normal rate of return in the near future while allowing the polluters continue to pollute in the western world.

According to Bloomberg, Democrats in the U.S. Congress are working on a climate- protection bill that would allow American emitters to use emerging-market and domestic offsets for potentially all of the carbon cuts required through 2025, according to New Carbon Finance. The bill, sponsored by Representatives Henry Waxman of California and Edward Markey of Massachusetts, reflects input from Richard L. Sandor, chairman and chief executive officer of Climate Exchange Plc, which owns the world’s biggest CO2 exchange in London.

The lobby -- which includes Goldman Sachs Group Inc., Morgan Stanley, Barclays Plc, JPMorgan Chase & Co. and 168 other firms -- argues that climate change can’t be solved without a profit-driven market. The organization and its members haven’t disclosed how much they earned from trading carbon permits.

China, Mexico and Greenpeace filed complaints against the carbon trade and argues that direct government tax will be more effective in protecting the environment.

It probably should be called Climate Pollution Bill.