Regulation lite: the rise of emissions trading

Emissions trading is the governmentally promoted hope for a sustainable world. In different contexts, trading regimes display varying potential – both in absolute terms and in comparison with other regulatory instruments. Emissions trading, however, is a device that raises urgent issues regarding its objectives, cost-effectiveness, fairness, transparency and legitimacy. Its use places emphasis on its “acceptability” and the virtues of regulation that is “lite” because it is non-threatening to the most powerful interests. Emissions trading is resonant with assumptions that are highly contentious – notably that it is acceptable because it involves no losers, or because, in desperate global circumstances, we have no choice but to use it. There is a need to confront the difficult issues presented by emissions trading; to face the challenges of combining “market” and “democratic” systems of legitimation; and to avoid taking refuge in all too comfortable beliefs in cumulative checks and balances.