The British High Commission in Pretoria recently announced that it would fund work to establish a carbon emissions trading programme for South Africa.

The grant has been awarded to private consulting firm Promethium Carbon to develop a pilot carbon trading platform. According to Promethium Carbon, the funding will "...fast track the development of a local carbon trading system in preparation for the carbon tax.”  A carbon tax for South African companies is planned for implementation by 2016.

This would be exciting news indeed if anyone could provide solid evidence that carbon markets actually lead to a reduction in carbon emissions. So far the results of the biggest and most sophisticated carbon trading market, the EU's Emission Trading System (ETS) show the opposite.