The Illinois senator also would reduce greenhouse gases by capping carbon emissions and allowing companies to trade pollution allowances. Companies would be able to buy and sell allowances to operate profitably, the plan says.
If you recall the LAT implied cap-and-auction:
Obama's call for polluters to pay for all carbon emissions is the central element of his version of a "cap-and-trade" system, a common feature in greenhouse-gas-reduction proposals.
Finally, MarketWatch had a cap-and-auction pull-quote while using both terms, cap-and-trade and auction in the body:
...Under a cap-and-trade plan, companies that produce carbon dioxide and other greenhouse gases receive or buy credits that give them the right to emit a certain amount. Companies that emit less carbon than their credits allow can profit by selling any excess credits on the open market, while those that exceed their emission allowance have to make up the difference or face heavy fines.Obama's plan would require all credits to be purchased at auction, rather than allocated by industry -- a move his campaign said would ensure that all polluters pay for every ton of emissions released....