Climate change protest in Hunter Valley | National Breaking News | News.com.au

“The protesters are angry that heavily polluting industries, like aluminium smelting, will receive 90 per cent of their pollution permits free from the Federal Government … allowing them to carry on largely unaffected by pollution constraints,” Rising Tide spokesman Steve Phillips said.

This is the exact kind of problem that a ETS will create – corporate welfare.

As Mankiw puts it, the fundamental theorem of ETS

Cap-and-trade = Carbon tax + Corporate welfare.