Here is another proof that Europe’s climate “leadership” could quickly be eclipsed once the United States has fully woken up to the climate/energy challenge. A new report published yesterday by New Carbon Finance, one of the world’s leading carbon market analysts, shows that an American cap-and-trade system based on current proposals in the US Congress could be in place by 2012-2013 and could reach a market value of 1 trillion dollar by 2020, twice the size of the EU’s emissions trading system.

The interesting White Paper of New Carbon Finance also provides an excellent overview of the emerging US carbon politics. More than half of all US states (60% of GDP) have already committed to reducing greenhouse gas emissions and no less than 13 federal bills are circulating in the Congress to address global warming through domestic action. All three remaining candidates for the Presidency have expressed their support for a future cap-and-trade system.

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