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You need to seperate carbon trading for business and for individuals.
For business carbon trading has a role in making sure that carbon emissions become a real cost and that incentivises companies to reduce emissions. The problem is that the carbon price is too low as you noted - this is because the recession has led to lower emissions in the short term without having to change much else. In addition there is uncertainty about the future of carbon trading given the state of negotiations leading up to Copenhagen this December. This is why it is crucial that we lobby for a strong agreement at Copenhagen - though the chances of that are fading. Either way, at the moment the carbon price is too low to make a meaningful difference.
For Individuals I believe that carbon trading is unhelpful. It fails to encourage the changes in behaviour that we need to see if we think that we can continue to live in the same way and just make ourselves feel better by planting the odd tree. A number of the offsetting companies have been found to be rather unscrupulous. I think that this YouTube spoof explains brilliantly why offseting doesn't work - http://www.youtube.com/watch?v=f3_CYdYDDpk
George
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