ETS hacking

If an emissions trading scheme comes into play, I’m considering setting up a non-profit with the sole purpose of buying and holding carbon credits – so that every dollar donated will effectively reduce the overall carbon cap.

This seems like a good way to:

  1. Get around governments setting inadequate carbon emissions targets and caps. (Which seems much more likely than not.)
  2. Further stimulate companies that produce carbon offsets or are more carbon neutral. (Since they could sell their credits at a higher price).
  3. Offer a better way for individuals to reduce overall carbon emissions when compared to purchasing carbon offsets. (Since buying up credits forces major polluters to reduce their emissions).

Unfortunately, the cynical side of me says that if this approach were to really take off, it will just lead to governments issuing more credits when businesses complain.

Thoughts?