The U.S. cap and trade market, which curbed the emissions from mainly coal-fired power plants that caused so-called acid rain in the 1990s, has been crippled by new U.S. pollution laws, the Wall Street Journal reported, citing industry officials and analysts.
The market, where power producers trade permits that allow them to emit sulfur dioxide and other pollutants, now finds that new Environmental Protection Agency rules put tougher limits on emissions but stress less reliance on the trading aspect. the newspaper said.
The permits are now seen as being almost worthless; “It is tragic,” ICAP Energy LLC analyst Gary Hart told the Journal. “It is something that worked so well.”