Carbon updating
Sir: From an environmental economist's perspective, Ross Clark's criticism of carbon trading (The West is running a protectionist racket', 11 August) is less an argument against carbon trading than against the poorly designed initial allocation of carbon allowances in trading schemes. If, in a future global carbon market, 'shrinking industrial operations' in Europe could make windfall profits by selling large quantities of allowances to firms in China, that might indeed be a sign that allocation had not been as well designed or impartial.
But business leaders and economists alike are agreed that creating a long-term, geographically widespread price for carbon is the single most important intervention which governments can make in tackling climate change. To achieve this through conjoined carbon trading schemes is far more politically realistic than harmonising our tax regimes. For this reason, it is vital that the reputation of carbon trading is not further tarnished by a second botched allowance allocation in the European scheme.
Helen Johns London W1
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