Lack of Direction on Climate Change Hobbles Carbon Trading -

Investors are steering clear of energy-saving projects meant to generate carbon credits, and traders in Europe are hunkering down through a period of consolidation that is disappointing to those who had hoped carbon markets would grow quickly into a $2 trillion-a-year business.

While the European Union’s Emission Trading System is ticking along, it is looking increasingly likely to be the only big game in town for years to come. Those who see carbon trading as the best way to cut worldwide emissions quickly are wondering if their vision of a global network of markets, encompassing the United States, Australia, Japan and other countries, will ever be realized.

Boo hoo.