The first thing we need to do is explain what the term, and the legislation, commonly known as “cap and trade” means.
“Cap and trade” is an economic policy – according to politicians – aimed at reducing CO2 emissions and helping to curb “global warming.” In the United States, the bill H.R. 2454, known as the American Clean Energy and Security Act of 2009 and sponsored by Rep. Henry Waxman (D, California) and Edward Markey (D, Massachusettes).
According to the Heritage Foundation, the bill’s provisions go into effect in 2012.
The goal of the cap and trade bill is to
(1) cap and reduce greenhouse gas (GHG) emissions, annually, so that GHG emissions from capped sources are reduced to 97% of 2005 levels by 2012, 83% by 2020, 58% by 2030, and 17% by 2050; and (2) establish a federal GHG registry.
The “cap” portion is the reduction of GHG emissions, the “trade” portion is the use of taxes and fees to offset any exceeding of those caps.
But how is that done?
Through a complex, almost indescribable, system of taxes and fees and “carbon offset” purchases – things that will be levied against any company that produces anything – and especially energy companies (read: power plants) and manufacturers (who manufacture everything from food and clothing to industrial machinery and tools). Those costs will not be absorbed by energy companies OR manufacturing plants. They will be passed along to you, the consumer.
And we’ll show you how.