Could someone explain exactly how these schemes are going to work, please?
As I understand it (and I may be completely wrong here), various organisations/businesses are going to be able to buy and sell carbon credits.
i.e., say Company A is very environmentally conscious and manages to reduce their emissions. They are then entitled to carbon credits which they can sell. Is this right?
then Company B is the opposite. It's business is such that it's not economically viable to cease some of their practices which increase their emissions. So they are able to buy the credits from Company A which will allow them in free conscience to continue their current practices.
Do I have this right?
If so, how on earth is this going to solve anything?
And, next thing, can someone please explain to me the reason why we are being warned that our electricity charges will rise exponentially with a carbon trading scheme. Is it because most electricity generation is coal powered, this is a nasty emitter, and therefore our power companies are going to have to buy the said credits as above to allow them to continue emitting their excessive muck?
Please don't jump down my throat if my conjectures above are quite wrong.
That is why I'm asking the question.
At this stage, I'm having some difficulty in suppressing the suspicion that, at least as far as electricity companies are concerned, they will jump at the chance of any excuse to bump up prices. Who will actually ask them to present justification for so doing? Not us silly little consumers, huh.