COP26 is having a hard time developing a carbon trading
market structure, which is bad news for nuclear power. Nuclear power is more
expensive than some forms of fossil fueled power plants, but it would be more competitive
if there were a real carbon tax on the greenhouse gases emitted by the fossil
fuels. No carbon tax encourages continued
release of greenhouse gases.
According to the Wall
Street Journal, Brazil has been receptive to carbon trading proposals at
COP26. However, Bloomberg
reports that poorer countries want more money from trading to pay for their costs
to adapt to climate change, and the EU objects to giving them part of the funds
from carbon credit exchanges between countries.
There are also efforts to develop carbon trading markets
outside of COP26, but a worldwide regime would be a big boost. Identifying a cost for emitting CO2 seems
like one of the best ways to limit it.
Of course, like all laws and markets, enforcement would be a
problem.
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