Carbon trading is meant to cut emissions, right?

The European emissions trading scheme was introduced in 2005 is the largest in the world.

Kevin Smith from Carbon Trade Watch a project of the Transnational Institute says that so far it has failed to cut emissions.

He also said that power prices in Europe have risen despite the power companies being given permits for free.

"The four biggest power companies in Europe profited from between 6 to 8 billion Euros out of the fist phase of the EU emissions trading scheme," he says.

"It seems to be running so far on the principle of polluter profits rather than polluter pays."

In this report: Kevin Smith from Carbon Trade Watch a project of the Transnational Institute

source: www.abc.net.au