http://www.scientificblogging.com/news/solve_the_climate_problem_by_abandoning_kyoto... the essence of the argument is this: Carbon Trading is the wrong approach.
Solid agreements & technology transfers would be better.
Politics of the possible? Don't know....
The EU Carbon Credit (CC) market was heavily scammed, EU CC's are still hovering around $1 EU, in the gutter. Investors got screwed. Why? B/C countries like France overstated their projected GDP, grabbed an armload extra CC's, kept their internal costs down & shafted England & others who correctly projected their GDP growth. In the end England didn't get terribly screwed b/c the CC prices fell through the floor due to oversupply, but they did get screwed nonetheless. Nobody's trading EU CC's, so the program became a farce. They're trying to fix it, but it'll take time before existing EU CC prices rise & become meaningful.
Once EU CC prices rise, though, companies purchasing CC's will have even more incentives to "back-door" emissions to CC selling countries, and by association off-shore production and cut jobs domestically.
Without China & India onboard, or if other CC scams broaden leading to an global oversupply of credits, carbon credit schemes risk losing efficacy - either the prices will stay lower than they would otherwise or carbon credit buyers will find more reasons to off-shore production. Instead of purchasing increasingly expensive credits & retiring them, companies will just have one more incentive to offshore emissions instead.
With China's per-unit emissions levels being higher than in the industrialized West, we're actually increasing emissions by off-shoring production, not lowering them. It's not just a question of per-capita emissions, but of overall progress.
So Kyoto - as it is now structured - might have just served to accelerate globalization & increase emissions. So much for screw the workers, save the environment.. it's screwed BOTH!
And what will unionists think of future Kyoto-like agreements? Will they have enough say to encourage saving domestic jobs via clean alternative energy?
There are other quandaries to consider: Were China to consent to emissions curbs & realized increased costs, then other nations could undercut China and start offering a competitive advantage below China's, functionally doubling China's internal costs (costs + lost income). This is why the ENTIRE WORLD needs to get onboard, not just the industrialized countries. Yes, the per-capita emission levels are lower in lesser developed nations, but the emissions per unit of production also needs to be considered as well as soot per capita.
See:
http://www.reason.org/commentaries/dalmia_20060622.shtmlhttp://www.jennifermarohasy.com/blog/archives/001376.htmlhttp://www.scientificblogging.com/the_soot_files