Another reason to hate Duke (Duke, other companies unveil climate plan):
Duke Energy was among a group of household-name companies and environmental groups that rolled out a plan Thursday to sharply lower greenhouse gas emissions as President-elect Obama assumes office.
The plan, developed over two years and announced in Washington, was an attempt to present the incoming president with a consensus of leading players in the debate over regulation of carbon dioxide. The gas is linked to climate change.
It's based on a proposed system that would place limits, dropping over time, on how much carbon dioxide may be released. Emitters like Duke would trade “allowances” – permission slips to release carbon – that reward companies for reducing emissions.
But the industry plan differs from Obama on a key starting point. The U.S. Climate Action Partnership, as it is known, says companies like Duke should be given those allowances. Obama has said he would make the companies buy them at auction.
It's a critical issue, because the value of the allowances is expected to soar into the trillions of dollars by 2050. The plan envisions reducing carbon releases 80 percent, compared to 2005, by that date.
“If (free allowances) were removed from the mix entirely, I would say that it was one of the cards that could make the house fall down very quickly,” said Keith Trent, Duke's chief strategy and policy officer.
In other words, if you don't buy me lunch, I ain't going. The lunch is therefore (almost) free for the eater (ignoring time costs), but the cost is absorbed by someone else.
Update: Here is what Environmental Capital says:
