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InsiderOnline Blog: October 2008

Thanks to Carbon Trading, Communism Finally Pays Off

Under Europe’s carbon-trading regime, formerly heavy-polluting countries can make a lot of money selling carbon credits to countries that are actually greener. Business Week reports:

Ukraine, Hungary, the Czech Republic and other countries of the region not exactly renowned for clean air have made or are close to signing deals to sell the rights to emit greenhouse gases, and their main customer is environmentally friendly Japan.

This carbon windfall dropped into Central and East Europe’s lap because the Kyoto Protocol sets 1990 as the reference year for future reductions in greenhouse gas emissions. The socialist states at that time were producing gargantuan amounts of CO2 and other gases implicated in global warming from unfiltered coal-fired power plants and factories; when those unprofitable industries withered, countless thousands of workers went on the dole—but the air got cleaner. In the coming years, in line with European Union mandates, would-be members gradually adopted better environmental policies. It’s the difference between the often unspeakably bad air of 1990 and the comparatively clean air of today that allows them to sell “carbon credits” potentially worth billions of euros.

Hat tip: Planet Gore.

Posted on 10/02/08 12:19 PM by Alex Adrianson

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