6.3 Trillion Dollars - "New Wealth"

Bloomberg reports that Japanese adviser Nishimura suggests over ten years selling carbon allowances to emitters and that "the huge chunk of new  wealth" generated be distributed to poor nations for global warming "and other needs" . 

Mutsuyoshi Nishimura, who was Japan’s chief climate-protection negotiator during the five years through 2008, proposed a $6.3 trillion carbon market to kick- start stalled talks. A small memo to the  Mr Nishimura - imposing a costly tax is not generating wealth - it is an impost on companies and organisations that do create it. You actually generate wealth by reducing taxation !The thing that really worries me is that so many dumb politicians might agree with him given the spread of the equally dumb warming alarmism.

The world could sell 250 billion metric tons of carbon- dioxide allowances to emitters in the 10 years through 2020, generating “a huge chunk of new wealth” that could help poor nations cope with the impact of global warming and other needs, Nishimura said yesterday in an interview atUnited Nations talks in Cancun, Mexico. He handed to Bloomberg an 11-page document outlining the plan.

“The key part is to cap globally and sell allowances to all corporations,” said Nishimura, who now advises the Japanese cabinet on climate matters. His proposal is not yet supported by Japan, nor any other nation, he said.

Under the plan, governments would divide up 660 billion tons of allowances through 2050. In the first phase, the 250 billion tons could be sold potentially at $25 each. The incentive of the cash would prompt governments to overcome differences and settle on a global peaking year for emissions and a distribution of allowances to each nation.

“The ultimate payment is going to be made by households” consuming goods and services that require fossil-fuel combustion, Nishimura said. “There would be a single carbon price.”

Nations would sell 200 billion tons in the 10 years through 2030, 150 billion tons in the decade after and 60 billion tons in the final phase of the 40-year program, according to the plan. International negotiations on the plan might delay its start until about 2020, he said.