Financial Times FT.com

Carbon trading: Creator of mechanism may be its destroyer

By Fiona Harvey, Environment Correspondent

Published: November 23 2009 16:31 | Last updated: November 23 2009 16:31

In 1990, the US passed landmark legislation on clean air, introduced in order to cut smog. That legislation had a profound impact on the climate change debate, and continues to do so.

Following the US Clean Air Act, enforcement took the form of a new type of system for limiting noxious emissions at the lowest possible cost. The system, used to encourage companies to eliminate substances such as nitrogen oxide and sulphur dioxide, was known as cap and trade.

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